Hedonic editing and order effect in decision-making with neurometric evaluation

Investment decisions are based largely on the information that investors are received from the target firm. In this research, we consider both the variable of Organization of Information, either segregate or integrate, and the Order of the information, either in the order of Negative-Positive or in the order of Positive-Negative. Three groups of information are tested in the experiment: a piece of Big Positive information and a piece of Small Negative information (BP/SN); a piece of Big Negative information and a piece of Small Positive (BN/SP); and a piece of Small Positive information and a piece of Small Negative information (SP/SN). The study applied the gathering of the electroencephalographic rhythms variations, as well as the heart rate and galvanic skin response. The neurometric indicators here employed were the Approach-Withdrawal (AW) and the Emotional (EI) indexes. In SP/SN group, the recency effect is found in AWI. However, when receiving information in large scale, either big positive or big negative, emotion plays a role during decision-making. In both case of BP/SN and BN/SP, emotion is effected by organization of information. In the condition of BP/SN, neurometrics AWI result suggests more approach potentials when two pieces of information presented integrated. While in the case of BN/SP, we observe the influence of both order and organization. Individual favours separation of information with the order of Negative-Positive, the recency effect.