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Why process matters: A social cognition perspective on economic behavior

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  • Crusius, Jan
  • van Horen, Femke
  • Mussweiler, Thomas

Abstract

Much research on economic behavior has been devoted to demonstrating deviations from standard economic theories. Such descriptive research has proven invaluable in showing that systematic violations of the norm occur frequently in human decision making. Here, we advocate a shift to a more process-focused research approach aimed at uncovering the why of economic behavior. We provide several examples highlighting that seemingly similar phenomena can be governed by very different psychological processes, that the same processes can have explanatory power in very different domains, and that the situational context is a crucial determinant of the mental processes governing behavior. In doing so, we advocate a social-cognitive perspective on economic behavior, aimed at revealing the psychological mechanisms that shape how people construe a particular situation. We hope that such a perspective can contribute to theoretical and empirical integration, novel predictions, and more precise strategies to change behavior.

Suggested Citation

  • Crusius, Jan & van Horen, Femke & Mussweiler, Thomas, 2012. "Why process matters: A social cognition perspective on economic behavior," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 677-685.
    • Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:677-685
    DOI: 10.1016/j.joep.2011.09.004
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    Cited by:

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    3. Dorrough, Angela R. & Leszczyńska, Monika & Barreto, Manuela & Glöckner, Andreas, 2016. "Revealing side effects of quota rules on group cooperation," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 136-152.
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    5. Lohse, Johannes & Rahal, Rima-Maria & Schulte-Mecklenbeck, Michael & Sofianos, Andis & Wollbrant, Conny, 2024. "Investigations of decision processes at the intersection of psychology and economics," Journal of Economic Psychology, Elsevier, vol. 103(C).
    6. Meub, Lukas & Proeger, Till E., 2015. "Anchoring in social context," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 29-39.
    7. Posten, Ann-Christin & Ockenfels, Axel & Mussweiler, Thomas, 2014. "How activating cognitive content shapes trust: A subliminal priming study," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 12-19.
    8. Meub, Lukas & Proeger, Till, 2016. "Can anchoring explain biased forecasts? Experimental evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 12(C), pages 1-13.
    9. Bol, Damien & Blais, André & Coulombe, Maxime & Laslier, Jean-François & Pilet, Jean-Benoit, 2023. "Choosing an electoral rule: Values and self-interest in the lab," Journal of Economic Psychology, Elsevier, vol. 95(C).
    10. Özgümüs, Asri & Rau, Holger A. & Trautmann, Stefan T., 2024. "Delayed risk in individual and social decisions," Journal of Economic Psychology, Elsevier, vol. 102(C).
    11. Meub, Lukas & Proeger, Till & Bizer, Kilian, 2013. "Anchoring: A valid explanation for biased forecasts when rational predictions are easily accessible and well incentivized?," University of Göttingen Working Papers in Economics 166, University of Goettingen, Department of Economics.
    12. Lotz, Sebastian & Schlösser, Thomas & Cain, Daylian M. & Fetchenhauer, Detlef, 2013. "The (in)stability of social preferences: Using justice sensitivity to predict when altruism collapses," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 141-148.
    13. Tanya O’Garra & Matthew R Sisco, 2020. "The effect of anchors and social information on behaviour," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-19, April.
    14. Manel Gharbi & Anis Jarboui, 2023. "Ownership Structure, Board Characteristics, and Firm Diversification: Evidence from an Emerging Country," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 3-20.
    15. Angela Ambrosino, 2017. "The Role of Agents’ Propensity toward Conformity and Independence in the Process of Institutional Change," STOREPapers 1_2017, Associazione Italiana per la Storia dell'Economia Politica - StorEP.
    16. Meub, Lukas & Proeger, Till, 2014. "Are groups 'less behavioral'? The case of anchoring," University of Göttingen Working Papers in Economics 188, University of Goettingen, Department of Economics.
    17. Zürn, Michael & Topolinski, Sascha, 2017. "When trust comes easy: Articulatory fluency increases transfers in the trust game," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 74-86.
    18. Lange, Jens & Krahé, Barbara, 2014. "The effects of information form and domain-specific knowledge on choice deferral," Journal of Economic Psychology, Elsevier, vol. 43(C), pages 92-104.
    19. Emin Karagözoğlu & Kerim Keskin & Elif Özcan-Tok, 2019. "Between anchors and aspirations: a new family of bargaining solutions," Review of Economic Design, Springer;Society for Economic Design, vol. 23(1), pages 53-73, June.
    20. Christian König-Kersting & Monique Pollmann & Jan Potters & Stefan T. Trautmann, 2021. "Good decision vs. good results: Outcome bias in the evaluation of financial agents," Theory and Decision, Springer, vol. 90(1), pages 31-61, February.
    21. Iris Lorscheid & Matthias Meyer, 2021. "Toward a better understanding of team decision processes: combining laboratory experiments with agent-based modeling," Journal of Business Economics, Springer, vol. 91(9), pages 1431-1467, November.
    22. Meub, Lukas & Proeger, Till, 2014. "An experimental study on social anchoring," University of Göttingen Working Papers in Economics 196, University of Goettingen, Department of Economics.
    23. repec:cgr:cgsser:05-02 is not listed on IDEAS
    24. Barrafrem, Kinga & Västfjäll, Daniel & Tinghög, Gustav, 2021. "The arithmetic of outcome editing in financial and social domains," Journal of Economic Psychology, Elsevier, vol. 86(C).

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    More about this item

    Keywords

    Social cognition; Psychological processes; Economic psychology; Behavioral economics;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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