How we decide shapes what we choose: decision modes track consumer decisions that help decarbonize electricity generation

Theory and Decision 92 (3):731-758 (2022)
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Abstract

With concerns regarding climate change rising, companies and policy makers seek to understand the precursors to environmentally-friendly consumer choice. Decision modes are the qualitatively different psychological processes employed to arrive at decisions. Across six studies, the present project establishes (a) which decision modes are employed by consumers to decide between electricity plans that differ in environmental impact, and (b) how employed decision modes affect those choices. We demonstrate that consumers are most likely to use Calculation Modes when facing such choices. Importantly, we find that Affect or Role Modes promote more environmentally-friendly choices, while Calculation Modes decrease environmentally-friendly choices. Experimentally promoting use of a Role Mode over a Calculation Mode increases selection of environmentally-friendly alternatives, and the relative degree of employing the Role Mode mediates this effect. Our findings provide insight into how decision mode usage can alter environmental decisions, and suggest mechanisms and tools for marketers and policy makers to influence consumer choice.

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References found in this work

Theory of Games and Economic Behavior.John Von Neumann & Oskar Morgenstern - 1944 - Princeton, NJ, USA: Princeton University Press.
Prospect Theory: For Risk and Ambiguity.Peter P. Wakker - 2010 - Cambridge University Press.
Prospect Theory: An Analysis of Decision Under Risk.D. Kahneman & A. Tversky - 1979 - Econometrica: Journal of the Econometric Society:263--291.

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