Psychosocial and Personality Factors in Economic Decision Making

Abstract

Economic decision-making largely affects the lives of the people. The objective of this study was to analyze the relationship among age, gender, and personality with psychosocial factors in economic decision-making. The study sample comprised of 150 businesspersons (men = 90, women= 60). Psychosocial Factor in Economic Decision-Making Scale (Ajmal et al., 2013a, 2013b) was used to assess the psychosocial factors that affect economic decision making. The personality was evaluated using Eysenik Personality Questionnaire (Urdu version translated by Amjad & Kausar, 2001). Age was found to have a significant negative relationship with the emotional factor in economic decision-making. However, the emotional and social factors had no relationship with either of the personality dimension while the cognitive factor was found to have a significant negative relationship with neuroticism and psychoticism. Moreover, psychoticism and age negatively predicted the cognitive factor and experience in the business positively predicted the cognitive factor in economic decision-making. The findings hold implications for psychologists, economists, business personnel, and policymakers.