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James hoWard
proposing a transcendent model for financial decision making, where
the total cognitive capacity of an individual consists of a conscious and
an unconscious component. It is an interactive model where each com-
ponent has its own coefficient signifying the relative importance of the
conscious and unconscious in this interactive relationship. Given the
differences between individual cognitive capacities, each person would
have her own unique values to solve the model. Finding ways to test
this model is one of the challenges for future researchers. e tran-
scendental model bears a close resemblance to Kahneman’s System 1
and System 2 model, where System 1 includes the unconscious com-
ponent with no capacity constraint. Exploring t ...