From Artificial Intelligence to Rational Intelligence: How Algorithmic Rationality Reshapes Consumer Decision-Making
Kutlu ERGÜN
https://doi.org/10.18267/pr.2026.vol.2587.10
Abstract: This study develops a conceptual framework to clarify the influence of algorithmic rationality on consumer decision-making by analyzing its psychological mechanisms and identifying its limiting conditions. The framework demonstrates that algorithmic ranking and personalization narrow evaluation sets and redefine decision criteria, thereby reshaping the processes of searching, evaluating, and selecting options. Decision quality improves when algorithmic outputs enable meaningful user control and reduce information friction and cognitive load. These conditions foster calibrated trust rather than uncritical conformity. However, the same features may induce conformity, overconfidence, or reactive behaviors if algorithmic authority replaces critical judgment, or if transparency and personalization raise concerns about manipulation or legitimacy. The framework also clarifies how decision risk, consequence severity, product characteristics, and consumer understanding moderate these effects. These factors determine whether algorithms serve as effective decision support tools or as sources of welfare-related errors and resistance. The article highlights that rational intelligence can both enhance and undermine consumer decision quality. The theory-driven propositions contribute to research on consumer decision-making and algorithmic rationality, providing a foundation for future empirical investigation.
Keywords: artificial intelligence, algorithmic rationality, consumer decision-making
JEL Classification codes: D11, D91, O33
Fulltext: PDF
Published by: Prague University of Economics and Business, Oeconomica Publishing House
Year of publication: 2026
Online publication date: 20 May 2026
Copyright: Authors of the papers
ISBN 978-80-245-2587-7
ISSN 2453-6113
Pages 122-132