The Role of Affective Dimensions in Shaping Economic Decision-Making under Uncertainty: Emotions, Intuition, and Behavioral Outcomes

Abstract

Economic decision-making under uncertainty has traditionally been analyzed through cognitive frameworks emphasizing probability assessment and expected utility. However, affective dimensions—including emotions, moods, and intuitive feelings—exert powerful influences on how individuals perceive, evaluate, and respond to uncertain prospects. This review examines the integration of affective processes into economic choice, grounded in somatic marker theory, dual-process models, and behavioral economics. Recognition of emotional influences has driven transformations from purely cognitive models to integrated affective-cognitive frameworks, from isolated individual affect to socially modulated emotional responses, and from static preference assumptions to dynamic, contextually constructed valuations. Specific mechanisms—including the affect heuristic, somatic markers, and emotional contagion—shape risk perception, ambiguity aversion, and intertemporal choices. Applications in investment behavior, consumer decision-making, and policy design demonstrate both explanatory power and intervention potential. Challenges of measurement, cultural variation, and the risk of emotional manipulation persist. Prospects center on neuroeconomic insights, affect-aware choice architecture, and governance frameworks that account for emotional dynamics in markets. The analysis concludes that affective dimensions are not merely sources of bias but integral components of adaptive decision-making under uncertainty, requiring theoretical and practical approaches that treat emotions as information rather than noise.