Happy and in Charge: How Moods Affect the Illusion of Control

Key findings from decision neuroscience question the basis of the rational decision-maker and show that far from all aspects influencing decision-making are controllable in the sense of being shaped or guided though conscious deliberation. So where does this illusion of control come from and what influences it? In this paper, we investigate the correlation between affective states, risk taking and the illusion of control, trying to understand how emotions and mood affect risk taking behavior and decision-making through a stock trading study. We find that moods have a dynamic relationship to the experience and illusion of control