Worry and Mental Accounting with Protective Measures

We examine the impact of worry on mental accounting effects under risk. Counter intuitively, worry has no main (positive) effect on willingness to pay (WTP) for protection, and mental accounting effects do not occur with all decision makers. Only those who tend to worry, seem to deal with the quantitative aspects of the decision situation and thus are affected by framing manipulations: We provide evidence for an interaction effect between worry and mental accounting occurring. Consequently, worriers even pay less for protection in specific decision situations.

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