The role of attribution of causality in economic decision making

Research has established that economic decisions often deviate from game theoretic predictions. We explore the process of causal thinking as a possible explanation for such deviations. Specifically, we suggest that causal information affects economic decisions based on the principles advocated by Weiner, 1985 and Weiner, 1986 attribution theory (AT) of motivation and emotion. Prior research in this area considered only subsets of the dimensions employed by the theory. We test the predictions stemming from AT in contexts where economic decisions involve sharing gains between party members (e.g., splitting profits) and assess how such decisions are affected by the reasons attributed for obtaining the gains. Results indicate a significant link between causal attribution and economic decisions and shed light on the rules and the rationale that guide this link. We conclude that research into economic decision making should pay a greater attention to the explanatory value of AT.

► Economic decisions have been shown to deviate from game theoretic predictions. ► We suggest that the process of causal thinking may explain some of the deviations. ► We test predictions of Attribution Theory (Weiner, 1985) in economic contexts. ► A significant link between causal attribution and economic thinking is found. ► Social motivation is shown to exert influence on economic decisions.