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Value Seeking and Prediction-Decision Inconsistency: Why Don't People Take What They Predict They'll Like the Most?

Psychonomic Bulletin and Review, Vol.6, No. 4, pp. 555-561, 1999

7 Pages Posted: 23 May 2008  

Christopher K. Hsee

University of Chicago - Booth School of Business

Abstract

In this research, it is proposed that, when making a choice between consumption goods, people do not just think about which option will deliver the highest consumption utility but also think about which choice is most consistent with rationales-beliefs about how they should make decisions. The present articles examines a specific rationale, value seeking. The value-seeking rational refers to the belief that one should choose the option in a choice set that has the highest monetary value. Studies 1 and 2 show that value seeking could lead to a prediction-decision inconsistency, prediction a high consumption utility from on option but choosing another option. Study 3 shows that the prediction-decision inconsistency could be created even by "illusory"(as opposed to turely monetary) values and that the inconsistency could be turned on or off through empirical manipulation.

Keywords: lay rationalism, affective forecasting

JEL Classification: D81, D11, D12, D91

Suggested Citation

Hsee, Christopher K., Value Seeking and Prediction-Decision Inconsistency: Why Don't People Take What They Predict They'll Like the Most?. Psychonomic Bulletin and Review, Vol.6, No. 4, pp. 555-561, 1999 . Available at SSRN: https://ssrn.com/abstract=1134428

Christopher K. Hsee (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

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