Journal of Behavioral Decision Making, Vol. 16, 2003
16 Pages Posted: 11 Oct 2006
Decision-makers are sometimes depicted as impulsive and overly influenced by hot,affective factors. The present research suggests that decision-makers may be too cold and overly focus on rationalistic attributes, such as economic values, quantitative specifications,and functions. In support of this proposition, we find a systematic inconsistency between predicted experience and decision. That is, people are more likely to favor a rationalistically-superior option when they make a decision than when they predict experience. We discuss how this work contributes to research on predicted and decision utilities; we also discuss when decision-makers overweight hot factors and when they overweight cold factors.
Keywords: experienced utility, lay rationalism, rationality, experienced utility, affective forecasting, happiness
JEL Classification: D81, D11, D12, D91
Suggested Citation: Suggested Citation
Hsee, Christopher K. and Yu, Frank and Zhang, Jiao and Xi, Yiheng, Lay Rationalism and Inconsistency between Predicted Experience and Decision. Journal of Behavioral Decision Making, Vol. 16, 2003. Available at SSRN: https://ssrn.com/abstract=929942