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1、±±±±±±±±±±±±±±±±±±±EMOTIONAL±±±±±±CHAPTER±±±±7±±±±FOUNDATIONS±7.1INTRODUCTIONTelevisionandprintreporterscommonlyattributethedecisionspeoplemaketoemotions.Thefinancialpress,inparticular,reliesonemotiontoexplainthemove-mentsoffinancialmarkets,bothupanddown.But,wereallydonotknowthatmuchabout
2、howemotionsinteractwithbehavioralinfluencesandotheremotionstoproducehumanactionsanddecisions.Evenlessisknownabouthowtheinter-actionsofinnatelyemotionalpeopleproducemarketoutcomes.Toprovideabasisforourexplorationoftheroleofemotioninfinancialdecision-making,thischapterreviewssomeofthepertin
3、entpsychologicalfindingsonemotion.Thechapterbeginswithdefiningwhatanemotionis.Sixobservablefeaturesal-lowustodifferentiateemotionsfromothermentalstatespeopleexperience,likemoods.Next,Section7.3reviewspsychologists’viewsonhowweexperienceemo-tions.Whetherourbraincontrolsouremotions,orviceve
4、rsa,isimportantforustounderstandbecauseasfinancialdecision-makerswewanttoknowhowtocontrol(orevenputtogooduse)ouremotionalresponses.Sections7.4and7.5considerevolutionarytheoryandthestructureofthebrain.Thehumanbrainhasundergonegreatchangesthroughevolution.Progressscientistshavemadeinlearnin
5、gabouttheevolutionofthestructureofthebrainandthefunctionsofparticularpartsofthebrainwillallowustouseourbrainstobecomebetterdecision-makers.Inaddition,studiesofpatientswithdamagetoparticularpartsofthebrainhaveprovidedsignif-icantinsightsintodecision-making.Importantly,theevidencepresentedi
6、nSection7.6suggeststhatdecision-makingactuallysufferswhenemotionalresponsesarelack-ing.Finally,afterasectionthatrecapstherelationshipbetweenourmindsandourbodies,Section7.8previewshowemotionimpactsfinancialdecision-making.7.2THESUBSTANCEOFEMOTIONPsychologistsgenerallyagreethatsuchstatesash
7、appiness,sadness,anger,interest,contempt,disgust,pride,fear,surprise,andregretareemotions.Wecaneachcreate120EMOTIONALFOUNDATIONS121ourownlistofemotions,butwebeginbyasking:Whatexactlyisanemotion?Andhowdoemotionsdifferfromothermentalstates?Althoughnofeaturesareuniquet