A Dual-Process Model of Economic Rationality: The Symmetric Effect of Hot and Cold Evaluations on Economic Decision Making

Stamos, Angelos, Bruyneel, Sabrina, De Rock, Bram, Cherchye, Laurens and Dewitte, Siegfried (2015) A Dual-Process Model of Economic Rationality: The Symmetric Effect of Hot and Cold Evaluations on Economic Decision Making. In: Collaboration in research. European Marketing Academy, Valencia. ISBN 9789082383300

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Abstract

Understanding the influence of a dual-processing system on economic rationality of consumers is critical in helping them maximize the utility of their decisions. In two studies we explore economic rationality of choices based on “hot” and “cold” evaluations, as well as the overall rationality across both types of evaluations. We find that rationality levels of “hot” and “cold” evaluations are high and comparable, but the overall rationality level across both types of evaluations is significantly lower. We conclude that the discrepancy between the “hot” and “cold” evaluations is responsible for significant loss of utility in consumers’ economic decisions, rather than a specific type of evaluation (“hot” versus “cold”) in itself. We discuss theoretical and practical implications of our findings.

Item Type: Book Section
Uncontrolled Keywords: Economic rationality, Consumer preferences, Symmetry, GARP, Decision making
Department: Faculties > Business and Law > Newcastle Business School
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Depositing User: John Coen
Date Deposited: 29 Sep 2020 13:47
Last Modified: 06 Oct 2020 07:23
URI: http://nrl.northumbria.ac.uk/id/eprint/44338

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