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.
NA - Advances in Consumer Research
Association for Consumer Research (ACR) North America Conference 2006