Who Uses the Cost-Benefit Rules of Choice? Implications for the Normative Status of Microeconomic Theory
Organizational Behavior and Human Decision ProcessesPublished 1 December 1993Open access
Richard P. Larrick, Richard E. Nisbett, James N. Morgan
Citations200
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TL;DR
Three factors to be associated with use of cost-benefit rules in everyday decisions are effectiveness in achieving desirable life outcomes, intelligence, and training in economics, which support the claim that cost- benefit reasoning is normative.
Abstract
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.
Keywords
Decision Sciences