ANALYSIS OF DECISION BEHAVIOR UNDER THE PERSPECTIVE OF JUDGMENT HEURISTICS AND THE PROSPECT THEORY: A STUDY WITH ACCOUNTING UNDERGRADUATE STUDENTS

Abstract

This study aims to analyze the decision behavior of future accountants in judgment situations, to verify the presence of decision biases from the Judgment Heuristics and Prospect Theory. Furthermore, the study applies the Cognitive Reflection Test – CRT, seeking to establish a connection between the cognitive ability of individuals, measured by CRT, and the presence of these decision biases. The results showed, overall, the action of reflection, formulation and certainty effects and biases of the misconception of chance and the conjunction fallacy in decision behavior of respondents. Moreover, only positive relationship between cognitive ability and the presence of the reflection effect was observed and the conjunction fallacy bias from the representativeness and availability heuristics. With respect to the reflection effect the relation was stronger for the losses field.