Open Access Library Journal
2019, Volume 6, e5476
ISSN Online: 2333-9721
ISSN Print: 2333-9705
DOI: 10.4236/oalib.1105476 Jun. 5, 2019 1 Open Access Library Journal
Incomplete Information Choice on Incumbents,
Cognitive Ability and Personality
Sergio Da Silva
1*
, Raul Matsushita
2
, Mauricio Ramos
1
1
Department of Economics, Federal University of Santa Catarina, Florianopolis, Brazil
2
Department of Statistics, University of Brasilia, Brasilia, Brazil
Abstract
In choices under incomplete information on incumbents, consumers with
stronger preferences are more likely to reinforce their prior choices with mo-
tivated reasoning. However, in situations where incomplete information is
restricted only to the prior choice, consumers with stronger preferences are
more likely to abandon, not reinforce, their prior choices due to cognitive
dissonance. Here, we consider how cognitive ability and personality traits
mediate such interplay between motivated reasoning and cognitive disson-
ance. We set an experiment to show that consumers with a stronger System 2
are more likely to engage in motivated reasoning to reinforce the prior choice
and thus suffer less cognitive dissonance. Cognitive dissonance can, however,
overcome motivated reasoning for those cognitively poor consumers who are
more emotional, less humble, less extraverted and less conscientious.
Subject Areas
Behavioral Economics, Consumer Behavior
Keywords
Choice under Incomplete Information, Prior Choices, Preference Strength,
Cognitive Dissonance, Motivated Reasoning, Cognitive Reflection, HEXACO
Personality Model, Behavioral Economics
1. Introduction
Consumers often make choices between options with missing information and
then come across second choices that have more complete information than that
were presented in the prior choice [1]. As a result, they have to decide between
the option chosen in the prior choice and the new one with more information.
How to cite this paper: Da Silva, S., Matsu-
shita, R. and Ramos, M. (2019) Incomplete
Information Choice on Incumbents, Cognitive
Ability and Personality. Open Access Library
Journal, 6: e5476.
https://doi.org/10.4236/oalib.1105476
Received: May 17, 2019
Accepted: June 2, 2019
Published: June 5, 2019
Copyright © 2019 by author(s) and Open
Access Library Inc.
This work is licensed under the Creative
Commons Attribution International
License (CC BY 4.0).
http://creativecommons.org/licenses/by/4.0/
Open Access