Who Uses the Cost-Benefit Rules of Choice? Implications for the Normative Status of Microeconomic Theory

We find three factors to be associated with use of cost-benefit rules in everyday decisions. These are effectiveness in achieving desirable life outcomes, intelligence, and training in economics. We argue that these empirical findings support the claim that cost-benefit reasoning is normative.

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Bibliographic Details
Published in:Organizational behavior and human decision processes 1993-12, Vol.56 (3), p.331-347
Main Authors: Larrick, Richard P., Nisbett, Richard E., Morgan, James N.
Format: Article
Language:English
Subjects:
Biological and medical sciences
Cognition. Intelligence
Cost benefit analysis
Decision making
Decision making. Choice
Economic theory
Fundamental and applied biological sciences. Psychology
Microeconomics
Psychology. Psychoanalysis. Psychiatry
Psychology. Psychophysiology
Statistical analysis
Studies
Citations: Items that cite this one
Online Access:Get full text
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Description
Summary:We find three factors to be associated with use of cost-benefit rules in everyday decisions. These are effectiveness in achieving desirable life outcomes, intelligence, and training in economics. We argue that these empirical findings support the claim that cost-benefit reasoning is normative.
ISSN:0749-5978
1095-9920
DOI:10.1006/obhd.1993.1058