The Different Effect of Psychological Distances on Neglected Opportunity Costs

38 Pages Posted: 25 Feb 2022

See all articles by Reut Blaywais

Reut Blaywais

Ben-Gurion University of the Negev

mosi rosenboim

Ben-Gurion University of the Negev

Abstract

The construal level theory suggests that four different types of psychological distance--temporal, social, spatial and hypothetical—similarly affect the way we think in terms of abstract or concrete perspectives. We simulated the four psychological distances and showed that different distances affected the participants’ ignorance of opportunity costs differently. We argue that in the social and hypothetical distance simulations, motivation declined and the investment of cognitive efforts was reduced. The temporal and spatial distances, however, showed no such decline. Thus, while the higher psychological distances can create a bigger picture, the forest, the motivation to look at it varies.

Keywords: construal level theory, opportunity cost, psychological distances, cognitive efforts, motivation

Suggested Citation

Blaywais, Reut and rosenboim, mosi, The Different Effect of Psychological Distances on Neglected Opportunity Costs. Available at SSRN: https://ssrn.com/abstract=4043723 or http://dx.doi.org/10.2139/ssrn.4043723

Reut Blaywais (Contact Author)

Ben-Gurion University of the Negev ( email )

1 Ben-Gurion Blvd
Beer-Sheba 84105, 84105
Israel

Mosi Rosenboim

Ben-Gurion University of the Negev

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