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The arithmetic of outcome editing in financial and social domains
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. (Jedilab)ORCID iD: 0000-0003-3171-8640
Linköping University, Department of Behavioural Sciences and Learning, Psychology. Linköping University, Faculty of Arts and Sciences. Decision Research, Eugene, OR, USA. (JediLab)ORCID iD: 0000-0003-2873-4500
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. Linköping University, Faculty of Medicine and Health Sciences. Linköping University, Department of Health, Medicine and Caring Sciences, Division of Society and Health. (JediLab; The National Center for Priority Setting in Health Care)ORCID iD: 0000-0002-8159-1249
2021 (English)In: Journal of Economic Psychology, ISSN 0167-4870, E-ISSN 1872-7719, Vol. 86, article id 102408Article in journal (Refereed) Published
Abstract [en]

Outcome editing refers to a set of mental rules that people apply when deciding whether to evaluate multiple outcomes jointly or separately, which subsequently affects choice. In a large-scale online survey (n = 2062) we investigate whether individuals use the same outcome editing rules for financial outcomes (e.g., a lottery win) and social outcomes (e.g., a party with friends). We also test the role of numeric ability in explaining outcome editing. Our results show that people’s preferences for combining or separating events depend on whether those events are in the financial or the social domain. Specifically, individuals were more likely to segregate social outcomes than monetary outcomes, except for when all outcomes were negative. Moreover, numeric ability was associated with preferences for outcome editing in the financial domain but not in the social domain. Our findings extend the understanding of the arithmetic operations underlying outcome editing and suggest that people rely more on calculations when making choices involving multiple financial outcomes and more on feelings when making choices involving social outcomes.

Place, publisher, year, edition, pages
Elsevier, 2021. Vol. 86, article id 102408
Keywords [en]
Economics and Econometrics, Applied Psychology, Sociology and Political Science, Hedonic editing, Renewable resources model, Decision making, Social decisions, Mental accounting, Numeracy
National Category
Psychology (excluding Applied Psychology) Economics
Identifiers
URN: urn:nbn:se:liu:diva-180154DOI: 10.1016/j.joep.2021.102408ISI: 000766634700004Scopus ID: 2-s2.0-85109423632OAI: oai:DiVA.org:liu-180154DiVA, id: diva2:1601652
Note

Funding: Thule Foundation; Lansforsakringar Alliance Research Foundation Grant [P15/2]; Swedish Research CouncilSwedish Research CouncilEuropean Commission [2018-01755]

Available from: 2021-10-08 Created: 2021-10-08 Last updated: 2022-05-26Bibliographically approved

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Barrafrem, KingaVästfjäll, DanielTinghög, Gustav

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Journal of Economic Psychology
Psychology (excluding Applied Psychology)Economics

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CiteExportLink to record
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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
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More styles
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  • de-DE
  • en-GB
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Output format
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