From Intuition to Insolvency: Intuitive Decision Makers End Up More Financial Constrained

Christopher Y. Olivola, Carnegie Mellon University, USA
Jan-Emmanuel De Neve, University College London, UK
Are consumers better off relying on their intuitions to make financial choices? Using a unique longitudinal dataset, we measure the impact of adolescent decision-making style on financial wellbeing in adulthood (12-15 years later). We find that relying on “gut feelings” when making decisions negatively predicts financial wellbeing.
[ to cite ]:
Christopher Y. Olivola and Jan-Emmanuel De Neve (2013) ,"From Intuition to Insolvency: Intuitive Decision Makers End Up More Financial Constrained", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.