Value Seeking and Prediction-Decision Inconsistency: Why Don't People Take What They Predict They'll Like the Most?
Christopher K. Hsee
University of Chicago - Booth School of Business
Psychonomic Bulletin and Review, Vol.6, No. 4, pp. 555-561, 1999
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.
Number of Pages in PDF File: 7
Keywords: lay rationalism, affective forecasting
JEL Classification: D81, D11, D12, D91
Date posted: May 23, 2008