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The Value Of Choice And Non-Choice As A Psychological Characteristic Of Money

Author

Listed:
  • Maria A. Maricheva

    (National Research University Higher School of Economics)

  • Vadim A. Petrovsky

    (National Research University Higher School of Economics)

Abstract

This work is devoted to the subjective value of money as a condition for the free choice of a person in the market for goods and services. Starting from the understanding of money as the universal equivalent of value, this paper emphasises the idea that money not only expresses (“measures”) value, but also represents a materialised possibility of having free choice of any commodity for a given value. It is assumed that the unfettered and multivariable nature of possible exchanges inherent in money has a special value for its holder. Thus, the hypothesis is formulated that money, as an embodiment of freedom of choice, symbolises something more than just the value of goods that can be purchased with that money. We refer to the hypothetical difference between the subjective value of money and the average price of goods that can be purchased with it as the "surplus value of money ( -«Delta»)". This phenomenon is experimentally fixed on the basis of the “Money - Commodity - Delta” methodology jointly developed by the authors. As such, in this work, the value of money as an instrument of free choice has been measured for the first time. Four groups of respondents were also identified according to their resolution of the "commodity or money" dilemma. The analysis of possible determinants of the surplus value of money may become a topic for further research.

Suggested Citation

  • Maria A. Maricheva & Vadim A. Petrovsky, 2024. "The Value Of Choice And Non-Choice As A Psychological Characteristic Of Money," HSE Working papers WP BRP 139/PSY/2024, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:139psy2024
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    File URL: https://wp.hse.ru/data/2024/02/02/2094427936/139PSY2024_merged.pdf
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    References listed on IDEAS

    as
    1. Zaleskiewicz, Tomasz & Gasiorowska, Agata & Kesebir, Pelin & Luszczynska, Aleksandra & Pyszczynski, Tom, 2013. "Money and the fear of death: The symbolic power of money as an existential anxiety buffer," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 55-67.
    2. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    3. Tang, Ning & Baker, Andrew, 2016. "Self-esteem, financial knowledge and financial behavior," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 164-176.
    4. Strömbäck, Camilla & Lind, Thérèse & Skagerlund, Kenny & Västfjäll, Daniel & Tinghög, Gustav, 2017. "Does self-control predict financial behavior and financial well-being?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 14(C), pages 30-38.
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    More about this item

    Keywords

    money; psychological characteristics of money; freedom of choice;
    All these keywords.

    JEL classification:

    • Z - Other Special Topics

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