On the Heritability of Consumer Decision Making: An Exploratory Approach for Studying Genetic Effects on Judgment and Choice

Abstract

While constructed preferences have received a great deal of attention, there has been virtually no research regarding the genetic basis of consumer judgment and choice. In this research, we examine a wide range of previously unexplored heritable effects on consumer choices and judgments. Moreover, whereas prior research on heritable traits has typically employed a piecemeal approach, demonstrating each heritable trait separately, we propose an alternative way to simultaneously explore common mechanisms and links among heritable traits and behaviors. Using a classic twins study design, we find a large heritable effect on preferences for (a) compromise (but not dominating) options, (b) sure gains, (c) an upcoming feasible, dull assignment, (d) maximizing, (e) utilitarian options, and (f) certain products. Conversely, we do not find significant heritable effects regarding judgment heuristics, discounting, and other decision problems. We tentatively propose that the pattern of findings might reflect a generic heritable individual difference relating to “prudence.” We discuss the implications of our research with respect to the determinants of preferences and future research on heritable aspects of judgment and choice.

The Heritability and Genetic Correlates of Mobile Phone Use: A Twin Study of Consumer Behavior

“…They found significant heritability for 7 out of 23 product preferences surveyed (e.g., for dark chocolate, hybrid cars, and science fiction), and for 13 out of 39 items concerning consumer judgment and decision making (e.g., compromise options, loss aversion, near-future temporal discounting, and maximizing versus satisfying). Near the conclusion of their article, Simonson and Sela (2011) suggested that twin research might reveal the genetic predispositions that lead certain consumers to prefer a certain type of mobile phone, which leads nicely to our study.…”

The Behavioral Genetics of Behavioral Anomalies

“…We build on an emerging literature wherein behavioral genetic techniques are used to study the genetic and environmental sources of variation in economic decision making (Barnea et al 2010;Cesarini et al 2008Cesarini et al , 2009aCronqvist and Siegel 2011;Simonson and Sela 2011;Zhong et al 2009;Zyphur et al 2009;Wallace et al 2007). We find that well-documented behavioral anomalies such as the conjunction fallacy, loss aversion, default bias, and representativeness are moderately heritable.…”

Heritability of Lifetime Income

“…More recent work has extended the literature by studying the genetic heritability of the formation of preferences (Cesarini et. al 2009, andSimonson andSela 2011) and financial decision-making (Barnea et al 2010, andCesarini et al 2010 Most of the attrition is due to death (e.g., of fatal diseases or accidents) and migration. 10 There are two other closely related branches in the literature.…”