How mood-related physiological states bias economic decisions

When making decisions, humans are susceptible to all sorts of biases, relative to rational norms. An important factor is incidental changes in affective states, such as variations in mood between happiness and sadness. We previously developed a computational model, in which mood affects choice by forming a predisposition to face costs and seek more rewards. Here, we generalized this theory to account for how specific inductions of happiness and sadness affect different types of economic decisions involving a tradeoff between costs (risk, delay, effort) and benefits (financial rewards). Across exploratory and confirmatory studies (N = 94), we observed a consistent bias exerted by transitory mood states, whether they were assessed through self-reports (rated happiness minus sadness) or inferred from physiological measures (valence of facial expression times intensity of autonomous arousal). This choice bias was best explained by our computational model, with a mood-scaled bonus added to the value of the more rewarded but more costly option, irrespective of the cost type (risk, delay or effort). Additionally, gaze tracking during decision making confirmed that the choice bias was driven by an early preference for the mood-congruent option. Together, these results demonstrate the feasibility of predicting irrational choices from objective measures of affective states.