Suppose an individual loses an irreplaceable object and someone else is at fault. How much should he be compensated? Normatively, compensation should equal the value (utility) to the victim. Our experiments demonstrate that compensation decisions often ignore value and are instead based on cost...

In this research, it is proposed that, when making a choice between consumption goods, people do not just think about which option will deliver the highest consumption utility but also think about which choice is most consistent with rationales-beliefs about how they should make decisions. The...

Charity marketers face the challenge of understanding how pro-social decisions are made. Are all solicitations made equal? The authors found that a helping opportunity and a giving opportunity reveal different pro-social preferences. In a series of four studies, involving hypothetical and real...