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Regulatory focus in economic contexts

Author

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  • Florack, Arnd
  • Keller, Johannes
  • Palcu, Johanna

Abstract

The authors argue that behavior in economic contexts will be better understood when it is taken into account that contexts can evoke self-regulatory strategies reflecting a promotion or prevention focus and that such contexts meet individuals with preferences for a specific kind of self-regulation. They refer to research showing that promotion- and prevention-focused self-regulation has an important impact on judgments, choice, and behavior in economic contexts, and that such effects of regulatory focus are a consequence of behavioral strategies and differences in information processing associated with the self-regulatory orientations of a promotion or prevention focus. Furthermore, the authors emphasize that cognitive feelings are a motivational force that keeps such self-regulatory processes running. In particular, they argue that feeling right and anticipation and experience of regret increase the engagement of individuals in promotion- or prevention-focused self-regulation and direct individuals towards the relevant self-regulatory goals. Finally, the authors provide examples documenting how knowledge about self-regulatory orientations of a promotion and a prevention focus can be applied to understand individuals’ behavior and to develop reasonable intervention strategies addressing relevant behavioral tendencies in the economic context.

Suggested Citation

  • Florack, Arnd & Keller, Johannes & Palcu, Johanna, 2013. "Regulatory focus in economic contexts," Journal of Economic Psychology, Elsevier, vol. 38(C), pages 127-137.
    • Handle: RePEc:eee:joepsy:v:38:y:2013:i:c:p:127-137
    DOI: 10.1016/j.joep.2013.06.001
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    References listed on IDEAS

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    2. Samson, Alain & Voyer, Benjamin G., 2014. "Emergency purchasing situations: Implications for consumer decision-making," Journal of Economic Psychology, Elsevier, vol. 44(C), pages 21-33.
    3. Maria C. Pereira & Filipe Coelho, 2020. "Regulatory Focus, Money Attitudes and Financial Literacy: Evidence from Portuguese Young Adults," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 615-625, December.
    4. Martin Söllner & Mirjam Dürnberger & Johannes Keller & Arnd Florack, 2022. "The Impact of Age Stereotypes on Well-being: Strategies of Selection, Optimization, and Compensation as Mediator and Regulatory Focus as Moderator: Findings from a Cross-Sectional and a Longitudinal S," Journal of Happiness Studies, Springer, vol. 23(2), pages 635-665, February.
    5. Jürgen Neumann & Dominik Gutt & Dennis Kundisch, 2018. "The Traveling Reviewer Problem – Exploring the Relationship between Offline Locations and Online Rating Behavior," Working Papers Dissertations 44, Paderborn University, Faculty of Business Administration and Economics.
    6. Chen, Catherine, 2023. "Framing energy-efficiency programs: A survey experiment," Energy Policy, Elsevier, vol. 183(C).
    7. Endrejat, Paul C. & Güntner, Amelie V. & Ehrenholz, Sina & Kauffeld, Simone, 2020. "Tailored communication increases the perceived benefits of solar energy," Energy Policy, Elsevier, vol. 144(C).

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