Rational economic theory suggests that people take their current level of wealth into account when they make financial decisions. If you’re going to give something up (your time, for instance) in exchange for money, the rational thing would be to consider how much you need the money. However, research from China Europe International Business School’s Xilin Li and Booth’s Christopher K. Hsee suggests people often neglect to do that—but can be prompted to.

More from Chicago Booth Review

More from Chicago Booth

Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.