When the body speaks, wallets listen: a literature review on the visceral influences in decision-making and implications for financial decisions

What the paper says

Purpose This paper aims to bridge a critical gap in behavioral finance by examining how physiological or visceral states – such as hunger, thirst, sexual arousal, mental fatigue and physical pain – influence financial decision-making. While the literature has advanced beyond rational models to account for cognitive biases and bounded rationality, it has yet to adequately consider the role of bodily states in shaping economic behavior. Design/methodology/approach An integrative review of interdisciplinary literature is conducted to explore how key visceral states affect nervous system functioning and impair cognitive processing. Based on this synthesis, a theoretical framework is proposed to explain the mechanisms through which these states disrupt rational deliberation in financial contexts. Findings The review identifies five core visceral states that significantly alter decision-making processes by reducing self-control, increasing impulsivity and narrowing attention. These effects are shown to have meaningful implications for high-stakes financial behaviors such as saving, borrowing and investing. Practical implications Recognizing the influence of visceral states on financial decisions can help policymakers and financial service providers design better interventions. Timing financial education or nudges to avoid moments of fatigue or hunger, and structuring decision environments to support self-control, can improve outcomes. Financial tools could also incorporate real-time cues to mitigate impulsive choices under physiological strain. Originality/value To the best of the authors’ knowledge, this paper is among the first to systematically integrate physiological psychology with behavioral finance, offering a novel perspective on how bodily states influence economic behavior. It calls for a reevaluation of financial decision-making models to include visceral influences and highlights the importance of incorporating these factors in both theoretical development and practical financial interventions.