IDEAS home Printed from https://ideas.repec.org/p/hig/wpaper/139psy2024.html
   My bibliography  Save this paper

The Value Of Choice And Non-Choice As A Psychological Characteristic Of Money

Author

Listed:
  • Maria A. Maricheva

    (National Research University Higher School of Economics)

  • Vadim A. Petrovsky

    (National Research University Higher School of Economics)

Abstract

This work is devoted to the subjective value of money as a condition for the free choice of a person in the market for goods and services. Starting from the understanding of money as the universal equivalent of value, this paper emphasises the idea that money not only expresses (“measures”) value, but also represents a materialised possibility of having free choice of any commodity for a given value. It is assumed that the unfettered and multivariable nature of possible exchanges inherent in money has a special value for its holder. Thus, the hypothesis is formulated that money, as an embodiment of freedom of choice, symbolises something more than just the value of goods that can be purchased with that money. We refer to the hypothetical difference between the subjective value of money and the average price of goods that can be purchased with it as the "surplus value of money ( -«Delta»)". This phenomenon is experimentally fixed on the basis of the “Money - Commodity - Delta” methodology jointly developed by the authors. As such, in this work, the value of money as an instrument of free choice has been measured for the first time. Four groups of respondents were also identified according to their resolution of the "commodity or money" dilemma. The analysis of possible determinants of the surplus value of money may become a topic for further research.

Suggested Citation

  • Maria A. Maricheva & Vadim A. Petrovsky, 2024. "The Value Of Choice And Non-Choice As A Psychological Characteristic Of Money," HSE Working papers WP BRP 139/PSY/2024, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:139psy2024
    as

    Download full text from publisher

    File URL: https://wp.hse.ru/data/2024/02/02/2094427936/139PSY2024_merged.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    2. Tang, Ning & Baker, Andrew, 2016. "Self-esteem, financial knowledge and financial behavior," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 164-176.
    3. Zaleskiewicz, Tomasz & Gasiorowska, Agata & Kesebir, Pelin & Luszczynska, Aleksandra & Pyszczynski, Tom, 2013. "Money and the fear of death: The symbolic power of money as an existential anxiety buffer," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 55-67.
    4. Strömbäck, Camilla & Lind, Thérèse & Skagerlund, Kenny & Västfjäll, Daniel & Tinghög, Gustav, 2017. "Does self-control predict financial behavior and financial well-being?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 14(C), pages 30-38.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Talwar, Manish & Talwar, Shalini & Kaur, Puneet & Tripathy, Naliniprava & Dhir, Amandeep, 2021. "Has financial attitude impacted the trading activity of retail investors during the COVID-19 pandemic?," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    2. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2022. "The Predictive Power of Self-Control for Life Outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 725-744.
    3. Thomas, Sheetal & Goel, Mridula & Agrawal, Dipak, 2020. "A framework for analyzing financial behavior using machine learning classification of personality through handwriting analysis," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    4. Piotr Bialowolski & Dorota Weziak-Bialowolska & Eileen McNeely, 2021. "The Role of Financial Fragility and Financial Control for Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1137-1157, June.
    5. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    6. Proto, Eugenio & Rustichini, Aldo, 2012. "Life Satisfaction, Household Income and Personality Traits," The Warwick Economics Research Paper Series (TWERPS) 988, University of Warwick, Department of Economics.
    7. Yann Algan & Elizabeth Beasley & Frank Vitaro & Richard Tremblay, 2014. "The Impact of Non-Cognitive Skills Training on Academic and Non-academic Trajectories: From Childhood to Early Adulthood," Working Papers hal-03429906, HAL.
    8. Boyce, Christopher & Czajkowski, Mikołaj & Hanley, Nick, 2019. "Personality and economic choices," Journal of Environmental Economics and Management, Elsevier, vol. 94(C), pages 82-100.
    9. Annette Bergemann & Marco Caliendo & Gerard J. van den Berg & Klaus F. Zimmermann, 2011. "The threat effect of participation in active labor market programs on job search behavior of migrants in Germany," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(7), pages 777-795, October.
    10. Niculaescu, Corina E. & Sangiorgi, Ivan & Bell, Adrian R., 2023. "Does personal experience with COVID-19 impact investment decisions? Evidence from a survey of US retail investors," International Review of Financial Analysis, Elsevier, vol. 88(C).
    11. Ilaria Schnyder von Wartensee & Elizabeth Hlabse & Gabriella Berloffa & Giuseppe Folloni, 2019. "The Role of Personal Identity in Human Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 461-479, July.
    12. Lin, Dajun & Lutter, Randall & Ruhm, Christopher J., 2018. "Cognitive performance and labour market outcomes," Labour Economics, Elsevier, vol. 51(C), pages 121-135.
    13. Yuping Jia & Laurence Van Lent & Yachang Zeng, 2014. "Masculinity, Testosterone, and Financial Misreporting," Journal of Accounting Research, Wiley Blackwell, vol. 52(5), pages 1195-1246, December.
    14. Alderotti, Giammarco & Rapallini, Chiara & Traverso, Silvio, 2023. "The Big Five personality traits and earnings: A meta-analysis," Journal of Economic Psychology, Elsevier, vol. 94(C).
    15. Szabó-Morvai, Ágnes & Kiss, Hubert János, 2022. "Különböznek-e a roma és nem roma diákok nem kognitív képességeikben? [Do Roma and non-Roma students differ in their non-cognitive abilities?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1433-1456.
    16. Estrellado, Emmanuel & Charoensilp, Pimmada & Yamada, Shoko, 2023. "The effects of game-based soft skills training: A quasi-experiment with Ethiopian garment workers," International Journal of Educational Development, Elsevier, vol. 101(C).
    17. Sofie Cabus & Joanna Napierala & Stephanie Carretero, 2021. "The Returns to Non-Cognitive Skills: A Meta-Analysis," JRC Working Papers on Labour, Education and Technology 2021-06, Joint Research Centre.
    18. By Tyas Prevoo & Bas ter Weel, 2015. "The importance of early conscientiousness for socio-economic outcomes: evidence from the British Cohort Study," Oxford Economic Papers, Oxford University Press, vol. 67(4), pages 918-948.
    19. Elliott, William, 2013. "The effects of economic instability on children's educational outcomes," Children and Youth Services Review, Elsevier, vol. 35(3), pages 461-471.
    20. Alfonso Arellano & Noelia Camara & David Tuesta, 2014. "El efecto de la autoconfianza en el conocimiento financiero," Working Papers 1427, BBVA Bank, Economic Research Department.

    More about this item

    Keywords

    money; psychological characteristics of money; freedom of choice;
    All these keywords.

    JEL classification:

    • Z - Other Special Topics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hig:wpaper:139psy2024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamil Abdulaev or Shamil Abdulaev (email available below). General contact details of provider: https://edirc.repec.org/data/hsecoru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.