A Systematic Literature Review: Choice Bracketing in Decision making

Abstract

Objectives In this research, the author revised the most controversial cited articles, which have 100 citations or more, between 1994 and 2022 to investigate the main reasons behind narrow bracketing and understand if it is rational psychological behavior or biased. Knowing the result would give scholars room to tackle this issue and look for more enhancements. Methods All open-access and non-restricted articles through the University of Pécs website were included, as were downloadable handbooks as well, but books were excluded. Due to time limitations and grasping pure results, the articles with 100 citations and above between 1994 and 2022 were selected. Results The author discovered that scholars discussed "choice bracketing" from their niche corner of science and letting other factors influence their research after thoroughly researching the literature. Accepting or rejecting the lottery, as well as decision differences between two separate choices, or a binary of choices, are not solely determined by determining factors such as bracketing or motivation, and they are not necessarily biased. Conclusions The author has elaborated and drawn maps for most factors that intervene in decision-making. However, by collecting the most debatable opinions from the literature, it was found that people’s decisions are driven by maximizing utility and loss aversion regarding wealth and income, individual psychology (emotions, heuristics, mental accounting), limitations of rationality and uncertainty, preferences and motivation, diversification limits, and time allocation. However, this is a psychological mode of thought that is limited to stimuli, timing, and rule factors. JEL Code: A14, D1, D71, D81, D83.