Author(s)

Sichen Li

Corresponding Author

Sichen Li

ABSTRACT

This study re-examined the rational actor model by considering its limitations and further modifications, including bounded rationality and bounded will power. Economic decision making, in fact, is affected by many psychological factors, and the application of cognitive dissonance theory in economic field is one of the indications. It reveals that the dissonance between attitude and behavior would raise an uncomfortable tension which can motivate individuals to either change behavior or attitude to release the tension. This study analyzed counterfeit purchase behavior based on the theory and revealed consumers coping strategies. The theory also provides prevention methods to mitigate counterfeit purchase.

KEYWORDS

Rational actor, cognitive dissonance, counterfeit purchase