Title: Are emotions exacerbating the recency bias?: An experimental study

Authors: Felizia Arni Rudiawarni; I. Made Narsa; Bambang Tjahjadi

Addresses: Faculty of Economics and Business, Universitas Airlangga, Surabaya 60285, East Java, Indonesia ' Faculty of Economics and Business, Universitas Airlangga, Surabaya 60285, East Java, Indonesia ' Faculty of Economics and Business, Universitas Airlangga, Surabaya 60285, East Java, Indonesia

Abstract: This research aims to examine whether emotions can affect the recency bias in judgement and decision making (JDM). This study finds that the effect of recency bias is so strong that emotion does not affect the recency bias experienced by participants when making decisions. Further analysis shows that humans tend to weigh negative information more heavily than positive information. This research contributes to behavioural finance research in which this research incorporates an element of emotion in the recency bias, where this is so far known, is still not widely researched, especially in emerging market.

Keywords: recency bias; emotion; JDM; judgement and decision making; experimental study.

DOI: 10.1504/IJTGM.2020.104913

International Journal of Trade and Global Markets, 2020 Vol.13 No.1, pp.61 - 70

Received: 28 Jan 2019
Accepted: 23 Apr 2019
Published online: 06 Feb 2020 *

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