Almost all of us procrastinate when it comes to making important decisions because we focus on potential negative outcomes. New research suggests contemplating negative scenarios affects us more profoundly than anticipating positive ones.
A team of researchers from the University of Bath (UK) and the University of Waterloo (Canada) analyzed data from the British Household Panel Survey (BHPS). This long-term study, which ran from 1991 to 2024 and included around 10,000 British families, measured a range of economic, social, and psychological variables. The scientists examined data from approximately 14,000 individuals, tracking their emotional reactions to real economic decisions regarding investments or job changes.
What Did the Researchers Discover?
The study found that an imbalance, where more attention is given to potential negative outcomes rather than positive ones, plays a central role in shaping economic behavior.
Survey participants who experienced more negative than positive anticipatory emotions were significantly more likely to avoid risk. The influence of negative anticipatory emotions was more than six times stronger than the anticipation of happiness. Moreover, fear diminished the likelihood that individuals would wait for delayed positive outcomes (such as returns on investments), even when patience could lead to greater rewards.
“In simple terms, the emotional pain of anticipating a loss of £10 is significantly stronger than the pleasure of thinking about winning £10. This imbalance determines the risks people are willing to take and how long they are willing to wait, potentially impacting decisions in everyday life, from finances and careers to health and well-being,” said Professor Chris Dawson, a co-author of the study.
The team also found that when individuals finally face the outcomes, they feel losses more acutely than rewards, as reported by Popular Science. The emotional pain from a loss is roughly twice as strong as that from an equivalent gain.
According to the authors, this research helps explain why people who are more risk-averse also tend to be more impatient.
“We see that risk aversion and impatience are psychologically linked,” noted Dr. Sam Johnson, a co-author of the study. “People try to avoid options with potential negative consequences and also want situations to resolve more quickly to minimize the emotional burden they feel—the fear of waiting for bad news,” the researcher added.
“Individuals may postpone medical examinations or avoid them altogether if results are delayed. Even if the examination reduces health risks, the fear of awaiting potentially bad news can deter the desire to get checked,” the team illustrated with an example from another area of our lives.
The findings of the study were published in the journal Cognitive Science.
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