The impact of risk and affect on information search efficiency

We develop and test a theoretical framework of the joint influence of risk and affect on information search efficiency. Our framework proposes that information search is less efficient (i.e., less strategic) when risk is high, versus low. It further proposes that the influences of positive and negative affect on search efficiency are asymmetric and depend on the level of risk. Negative affect improves search efficiency when risk is high, but not when it is low. Positive affect degrades search efficiency when risk is low, but not when it is high. We find results consistent with our framework in two experiments. We discuss implications for affect research and for decision making in risky contexts, including financial statement auditing.