Heuristic and Systematic Information Processing When Valuating Multiple Gains and Losses

Dorothea Schaffner, New York University, USA
Andreas Herrmann, University of St.Gallen, Switzerland
Based on prospect theory (Kahneman & Tversky, 1979) individuals are predicted to violate simple economic principles when evaluating consolidated versus segregated gains and losses (Thaler, 1985). Resting on the heuristic-systematic model of information processing (Chaiken, 1987) this paper attempts to enhance our understanding of the motivational and cognitive underpinnings of these evaluations. We predict that valuations of multiple gains and losses are influenced by the mode of information processing (systematic versus heuristic) and the prevailing motivation (high versus low accuracy motivation). The predictions were partly confirmed in an experimental study.
[ to cite ]:
Dorothea Schaffner and Andreas Herrmann (2007) ,"Heuristic and Systematic Information Processing When Valuating Multiple Gains and Losses", in NA - Advances in Consumer Research Volume 34, eds. Gavan Fitzsimons and Vicki Morwitz, Duluth, MN : Association for Consumer Research, Pages: 441-450.