Understanding public participatory budgeting behavior: how cognitive biases shape public budget preferences

Purpose This study investigates how individual-level cognitive biases shape budgetary preferences in public participatory budgeting (PB), offering a micro-level perspective that complements the traditional research focus on collective decision-making processes. Design/methodology/approach Conducting an empirical generalization replication of Overmans and Grimmelikhuijsen's (2025) experiment, this study examines how cognitive biases (anchoring, herding, mental accounting and loss aversion) influence public budget allocations in local Chinese contexts. Controlled experimental scenarios were employed to analyze participants' budgetary preferences and identify systematic deviations resulting from underlying cognitive biases. Findings The results indicate that public budgeting decisions are significantly shaped by multiple cognitive biases: allocations exhibit anchoring effects from initial numerical values, demonstrate herding tendencies and generally favor gain-generating projects. Notably, the study found no statistically significant evidence of mental accounting or loss aversion, suggesting that the manifestation of cognitive biases is highly context- and subject-dependent. Originality/value This study contributes to the behavioral public administration literature through systematic validation of cognitive bias mechanisms in PB context, offering an integrated framework that bridges behavioral science and budgetary decision-making. Furthermore, the findings provide actionable policy guidance for developing bias-aware budgeting systems and establishing decision architectures that effectively reconcile behavioral insights with rational fiscal principles.

Authors

Institutions

Publication Details

Journal
Journal of Public Budgeting Accounting & Financial Management
Published
2026-04-02
DOI
https://doi.org/10.1108/jpbafm-08-2025-0232
Primary Topic
Public Policy and Administration Research
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Understanding public participatory budgeting behavior: how cognitive biases shape public budget preferences

Xiaoxuan Chen, Wenbin Li, Jia Yang
Journal of Public Budgeting Accounting & Financial Management
Public Policy and Administration Research
article

Understanding public participatory budgeting behavior: how cognitive biases shape public budget preferences

Xiaoxuan Chen, Wenbin Li, Jia Yang
article en

Abstract

Purpose This study investigates how individual-level cognitive biases shape budgetary preferences in public participatory budgeting (PB), offering a micro-level perspective that complements the traditional research focus on collective decision-making processes. Design/methodology/approach Conducting an empirical generalization replication of Overmans and Grimmelikhuijsen's (2025) experiment, this study examines how cognitive biases (anchoring, herding, mental accounting and loss aversion) influence public budget allocations in local Chinese contexts. Controlled experimental scenarios were employed to analyze participants' budgetary preferences and identify systematic deviations resulting from underlying cognitive biases. Findings The results indicate that public budgeting decisions are significantly shaped by multiple cognitive biases: allocations exhibit anchoring effects from initial numerical values, demonstrate herding tendencies and generally favor gain-generating projects. Notably, the study found no statistically significant evidence of mental accounting or loss aversion, suggesting that the manifestation of cognitive biases is highly context- and subject-dependent. Originality/value This study contributes to the behavioral public administration literature through systematic validation of cognitive bias mechanisms in PB context, offering an integrated framework that bridges behavioral science and budgetary decision-making. Furthermore, the findings provide actionable policy guidance for developing bias-aware budgeting systems and establishing decision architectures that effectively reconcile behavioral insights with rational fiscal principles.

Journal of Public Budgeting Accounting & Financial Management
Shenzhen Polytechnic University (CN), South China University of Technology (CN)
Partnerships for the goals
Openalex Percentile: Top 24%
Public Policy and Administration Research
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Understanding public participatory budgeting behavior: how cognitive biases shape public budget preferences — Xiaoxuan Chen, Wenbin Li, et al. · Journal of Public Budgeting Accounting & Financial Management (2026) | TGRS Research Map | TGRS