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Explicit Feedback And Their Affective Assessment

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Explicit feedback condition. Participants in the “explicit feedback” condition followed almost the same procedure as those in the “implicit feedback” condition. However, after reporting their affective response to the outcome of their self-selected investment decision, participants were presented with feedback comparing their affective forecast to their actual affective response. Unlike the implicit condition, this feedback explicitly informed participants of their affective forecasting ability. The rates of return of the actual investment decisions were matched with the returns imagined in the affective forecasting task to enable individualized feedback comparing predicted and actual affective responses at the same rate of return for each participant (see web appendix D).
Application Phase
Following the learning phase, participants were notified that a second round of the study was about to commence. In the application phase, participants from all three conditions proceeded through the experimental procedure identically (see figure 2). In the new investment period respondents were told that five years had passed and that they had continued to invest on a regular basis; however, the market conditions had changed and the average long-term return on the mutual funds available to them was now 10%. Therefore, their goal was to make investment decisions that returned more than 10%. Each person was asked to make 15 affective forecasts followed by 15 investment decisions that were

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