Money vs. Meaning as Drivers of Behavior: Evidence from Latino America

Abstract

Research in decision sciences, psychology, behavioural economics, and management suggests that rationality-based models are not always valid to explain human behaviour (Ariely, 2009; Thaler, 2000). However, business schools and management executives continue teaching and using Western-developed and rationality-based models of human behaviour that do not consider cultural or personal differences, and the intrinsic human characteristics are inconsistent with rational choice models (Chen & Miller, 2011; Thaler, 2000). Following recent work by Ariely, Kamenica, and Prelec (2008), this paper tests the role of perceived meaning as a significant motivation driver in a Latin-American setting through two experimental studies. Previous research on the violations of rationality assumptions is based mainly on Western and developed countries, and this study’s results provide support towards the generalization of quasi-rational models of human behaviour in Latin America. The existing evidence is expanded to countries with different cultural backgrounds. Implications for management, business, and public policy practice as well as future research is also discussed.