When people learn to make decisions from experience, a reasonable intuition is that additional relevant information should improve their performance. In contrast, we find that additional information about foregone rewards (i.e., what could have gained at each point by making a different choice) severely hinders participants’ ability to repeatedly make choices that maximize long-term gains. We conclude that foregone reward information accentuates the local superiority of short-term options (e.g., consumption) and consequently biases choice away from productive long-term options (e.g., exercise). These conclusions are consistent with a standard reinforcement-learning mechanism that processes information about experienced and forgone rewards. In contrast to related contributions using delay-of-gratification paradigms, we do not posit separate top-down and emotion-driven systems to explain performance. We find that individual and group data are well characterized by a single reinforcement-learning mechanism that combines information about experienced and foregone rewards.

For connoisseurs of antiques and antiquities, cleaning old objects can reduce their value. In five experiments (total N = 1,019), we show that lay people also often judge that old objects are worth less when cleaned, and we test two explanations for why cleaning can reduce object value. In Experiment 1, participants judged that cleaning an old object would reduce its value, but judged that cleaning would not reduce the value of an object made from a rare material. In Experiments 2 and 3 we described the nature, age and origin of the traces that cleaning would remove. Now participants judged that cleaning old historical traces would reduce the object’s value, but cleaning recently acquired traces would not. In Experiment 4, participants judged that the current value of an old object is reduced even when it was cleaned in ancient times. However, participants in Experiment 5 valued objects cleaned in ancient times as much as uncleaned ones, while judging that objects cleaned recently are worth less. Together, our findings suggest that cleaning objects may reduce value by removing valued historical traces, and by changing objects from their historic state. We also outline potential implications for previous studies showing that cleaning reduces the value of objects used by admired celebrities.

Social Value Orientation (SVO) refers to an individual’s preference for the division of resources between the self and another person. Since evidence suggests that hormones influence several facets of human social behavior, we asked whether SVO might fluctuate across the female menstrual cycle. Using self-report data obtained in two independent online studies, we show that cooperative preferences, as indexed by SVO, are indeed significantly more prosocial in the early follicular compared to the midluteal phase in naturally ovulating women. Furthermore, when estimating hormonal variations from norm data, we found estradiol, but not progesterone or testosterone, to be a significant predictor of SVO across the menstrual cycle in both studies, with a negative correlation. Our findings provide evidence that the willingness to cooperate varies across the natural female menstrual cycle and highlight the potential of investigating psychological effects of ovarian sex hormones.

Three experiments investigated the relations between buyers’ wealth or ability to pay (ATP) and sellers’ first offers. Study 1 demonstrated a positive correlation between sellers’ first offers and their perceptions of the buyer’s ATP as well as its real economic power (indicated by the company’s market value). In Study 2, sellers in a field experiment made higher offers to potential buyers of higher ATP. Study 3 examined the relations between buyer’s ATP, the perception of its ability to obtain alternatives to a specific deal, and sellers’ first offers. We found a positive correlation between sellers’ perception of buyers’ ATP, real ATP (as indicated by market value), and sellers’ perception of buyers’ availability of alternatives. As in Study 1, here too, the unit of analysis was the behavior of the individual participant. However, when sellers were primed to concentrate on buyers’ alternatives, their first offers were negatively related to perceived buyer’s alternatives.

Binary sequences are characterized by various features. Two of these characteristics—alternation rate and run length—have repeatedly been shown to influence judgments of randomness. The two characteristics, however, have usually been investigated separately, without controlling for the other feature. Because the two features are correlated but not identical, it seems critical to analyze their unique impact, as well as their interaction, so as to understand more clearly what influences judgments of randomness. To this end, two experiments on the perception of binary sequences orthogonally manipulated alternation rate and maximum run length (i.e., length of the longest run within the sequence). Results show that alternation rate consistently exerts a unique effect on judgments of randomness, but that the effect of alternation rate is contingent on the length of the longest run within the sequence. The effect of maximum run length was found to be small and less consistent. Together, these findings extend prior randomness research by integrating literature from the realms of perception, categorization, and prediction, as well as by showing the unique and joint effects of alternation rate and maximum run length on judgments of randomness.

The MPG illusion and the time-saving bias both show that people misjudge the gains from increases in efficiency or speed, because people falsely believe that efficiency and speed are linearly related to consumption (e.g., gallons of fuel or journey time). This efficiency-consumption gap (ECG) has been demonstrated consistently in various situations. In parallel, people have also been found to show a diminished sensitivity to increases in magnitudes when judged under separate vs. joint evaluation modes (SE vs. JE). We show that these “two wrongs can make a right”: when people judge efficiency upgrades under SE mode, their subjective judgments follow a concave curve that closely resembles the curvilinear pattern of efficiency upgrades, making their preferences (artificially) less biased than they are under JE. In two studies we show that when asked for their willingness-to-pay (WTP) for upgrading products or services in two (a smaller vs. a larger) upgrade options, WTPs are less different in SE vs. JE modes. This means that people are exhibiting lower sensitivity to the upgrade size under SE which leads to a de-biasing effect. We show that because JE follow a linear trend, it yields biased preferences for efficiency measures, but not for consumption measures. In contrast, SE yield biased preferences for consumption, but not for efficiency measures.

According to the deliberation without attention (DWA) hypothesis, people facing a difficult choice will make a better decision after a period of distraction than after an equally long period of conscious deliberation, an effect referred to as the unconscious thought advantage (UTA). The status of the DWA hypothesis is controversial, as many studies have tried but failed to replicate the UTA. Here, we report a series of experiments that sought to identify the conditions under which the UTA can be replicated. Our starting point was a recent meta-analysis that identified the conditions under which the UTA was strongest in previous studies. Using a within-subjects design and a task that met each of these conditions, we failed to replicate the UTA. Based on closer inspection of previous methods and findings, we then examined some additional factors that could be important for replicating the UTA, including mental fatigue and choice complexity. This was to no avail, as the results revealed only a significant conscious thought advantage, when choice complexity was increased relative to the first experiment. We subsequently conducted exploratory analyses on the data across experiments and found that male subjects showed a significant conscious thought advantage while female subjects showed a trend towards an UTA. Taken together, our results suggest that replication of the UTA may depend more on characteristics of the sample than on the characteristics of the task, and they suggest that gender could be a source of variance in the outcomes of previous studies using a between-subjects design.

To what degree do people prefer to choose for themselves and what drives this preference? Is it memory-based and results from a life-long association between choices and better outcomes, or is the process of choice itself reinforcing? In a new paradigm, across 6 experiments, participants experienced both ’Own Choice’ and ’Computer Picks’ conditions with identical outcomes before selecting which condition to re-experience in the final part of the experiment. Consistent with previous work, an overwhelming majority ( 83%) preferred own-choice. Several variations of the paradigm reveal that (1) Preference For Choice (PFC) is reduced when thinking about the task without actually choosing in it, (2) PFC is substantially reduced by choice-unrelated cognitive load, and (3) Preference For Choice is further diminished when selection is based on criteria other than one’s preferences. Across experiments, participants’ self-rated enjoyment predicted a significant portion of their PFC, while their perceived gains had little to no predictive value. If PFC stems solely from past reinforcement learning (i.e., memory) then neither performing another few scores of choices nor adding cognitive load to that sequence of choices would be expected to dramatically affect it. Hence, our findings suggest that a significant part of this preference stems from the process of choice itself, and that the experience it confers can itself be reinforcing. We discuss the implications of the proposed mechanism for PFC, which leads us to the prediction that PFC may be muted or even reversed under specific conditions and what this means for when the ‘opposite’ effect – sticking with the default – will occur.

Combining meaning, memory, and development, the perennially popular topic of intuition can be approached in a new way. Fuzzy-trace theory integrates these topics by distinguishing between meaning-based gist representations, which support fuzzy (yet advanced) intuition, and superficial verbatim representations of information, which support precise analysis. Here, I review the counterintuitive findings that led to the development of the theory and its most recent extensions to the neuroscience of risky decision making. These findings include memory interference (worse verbatim memory is associated with better reasoning); nonnumerical framing (framing effects increase when numbers are deleted from decision problems); developmental decreases in gray matter and increases in brain connectivity; developmental reversals in memory, judgment, and decision making (heuristics and biases based on gist increase from childhood to adulthood, challenging conceptions of rationality); and selective attention effects that provide critical tests comparing fuzzy-trace theory, expected utility theory, and its variants (e.g., prospect theory). Surprising implications for judgment and decision making in real life are also discussed, notably, that adaptive decision making relies mainly on gist-based intuition in law, medicine, and public health.

In this paper, we document a violation of normative and descriptive models of decision making under risk. In contrast to uncertainty effects found by Gneezy, List and Wu (2006), some subjects in our experiments valued lotteries more than the best possible outcome. We show that the overbidding effect is more strongly related to individuals’ competitiveness traits than comprehension of the lottery’s payoff mechanism.

It has been proposed that recognition can form the basis of simple but ecologically rational decision strategies (Gigerenzer & Goldstein, 1996). Borges, Goldstein, Ortmann, & Gigerenzer (1999) found that constructing share portfolios based on simple name recognition alone often yielded better returns than the market index. We describe four studies with seven samples of participants from three countries (total N = 319) in which the returns of recognized and unrecognized shares from several stock markets were tracked over various periods of time. We find no support for the claim that a simple strategy of name recognition can be used as a general strategy to select stocks that yield better-than-average returns. However, there was some suggestion in the data that recognition performs better when the market is falling and worse when it is rising. A follow-up study indicated that the absence of an overall recognition effect could not easily be attributed to our reliance on student participants or smaller samples than Borges et al. (1999) had used. We conclude that, with respect to changes in value, selecting stocks on the basis of name recognition is a near-random method of portfolio construction that offers little, if any, benefit to the personal investor.

In the ultimatum game, one player proposes a split of money between him- or herself and another player, who can accept the offer (and both players keep the allocated money) or reject the offer (and both players get nothing). The present study examined predictors of accepting unfair ultimatum offers. In Study 1, 184 participants responded to an unfair ultimatum offer, completed a measure of cognitive reflection, and completed a self-report measure of rational and experiential thinking. Slightly more than half of the participants (54.3%) accepted the unfair offer, and cognitive reflection was positively correlated with accepting unfair offers. The rational and experiential thinking scales were not significantly correlated with ultimatum decisions. In Study 2, 306 participants responded to 20 ultimatum offers that varied in fairness and completed an expanded measure of cognitive reflection. Performance on the cognitive reflection measure predicted the number of ultimatum offers accepted. These results suggest that rejecting ultimatum offers is related to intuitive, heuristic-based thinking, whereas accepting offers is related to deliberate, analytic-based thinking.

Field studies in many domains have found evidence of decision fatigue, a phenomenon describing how decision quality can be impaired by the act of making previous decisions. Debate remains, however, over posited psychological mechanisms underlying decision fatigue, and the size of effects in high-stakes settings. We examine an extensive set of pretrial arraignments in a large, urban court system to investigate how judicial release and bail decisions are influenced by the time an arraignment occurs. We find that release rates decline modestly in the hours before lunch and before dinner, and these declines persist after statistically adjusting for an extensive set of observed covariates. However, we find no evidence that arraignment time affects pretrial release rates in the remainder of each decision-making session. Moreover, we find that release rates remain unchanged after a meal break even though judges have the opportunity to replenish their mental and physical resources by resting and eating. In a complementary analysis, we find that the rate at which judges concur with prosecutorial bail requests does not appear to be influenced by either arraignment time or a meal break. Taken together, our results imply that to the extent that decision fatigue plays a role in pretrial release judgments, effects are small and inconsistent with previous explanations implicating psychological depletion processes.

In social interaction, the facial expression of an opponent contains information that may influence the interaction. We asked whether facial expression affects decision-making in the ultimatum game. In this two-person game, the proposer divides a sum of money into two parts, one for each player, and then the responder decides whether to accept the offer or reject it. Rejection means that neither player gets any money. Results of a large-sample study support our hypothesis that offers from proposers with a smiling facial expression are more often accepted, compared to a neutral facial expression. Moreover, we found lower acceptance rates for offers from proposers with an angry facial expression.

Previous research has demonstrated that consistency between people’s behavior and their dispositions has predictive validity for judgments of regret. Research has also shown that differences in the personality variable of action orientation can influence ability to regulate negative affect. The present set of studies was designed to investigate how both consistency factors and action-state personality orientation influence judgments of regret. In Study 1, we used a recalled life event to provide a situation in which the person had experienced either an action or inaction. Individuals with an action orientation experienced more regret for situations involving inaction (staying home) than situations involving action (going out). State-oriented individuals, however, maintained high levels of regret and did not differ in their regret ratings across either the action or inaction situations. In Study 2, participants made realistic choices involving either an action or inaction. Our findings revealed the same pattern of results: action-oriented individuals who chose an option that involved not acting (inaction) had more regret that individuals who chose an option that involved acting (action). State-oriented individuals experienced high levels of regret regardless of whether they chose to act or not to act.

Executing an important decision can be as easy as moving a mouse cursor or reaching towards the preferred option with a hand. But would we decide differently if choosing required walking a few steps towards an option? More generally, is our preference invariant to the means and motor costs of reporting it? Previous research demonstrated that asymmetric motor costs can nudge the decision-maker towards a less costly option. However, virtually all traditional decision-making theories predict that increasing motor costs symmetrically for all options should not affect choice in any way. This prediction is disputed by the theory of embodied cognition, which suggests that motor behavior is an integral part of cognitive processes, and that motor costs can affect our choices. In this registered report, we investigated whether varying motor costs can affect response dynamics and the final choices in an intertemporal choice task: choosing between a readily available small reward and a larger but delayed reward. Our study compared choices reported by moving a computer mouse cursor towards the preferred option with the choices executed via a more motor costly walking procedure. First, we investigated whether relative values of the intertemporal choice options affect walking trajectories in the same way as they affect mouse cursor dynamics. Second, we tested a hypothesis that, in the walking condition, increased motor costs of a preference reversal would decrease the number of changes-of-mind and therefore increase the proportion of impulsive, smaller-but-sooner choices. We confirmed the hypothesis that walking trajectories reflect covert dynamics of decision making, and rejected the hypothesis that increased motor costs of responding affect decisions in an intertemporal choice task. Overall, this study contributes to the empirical basis enabling the decision-making theories to address the complex interplay between cognitive and motor processes.

We explored how the perspective through which individuals view their actions influences their ethicality, comparing a narrow perspective that allows for evaluation of each choice in isolation, to a broad perspective that promotes an aggregate view of one’s choices. To examine unethical behavior we employed a computerized variation of a trivia game that challenges the player’s integrity because, rather than choosing the correct answer, players indicate whether the correct highlighted answer is the answer they had in mind. In Experiment 1 perspective was modified through the choice procedure: broad perspective evoked by an aggregate decision regarding the upcoming test items and narrow perspective evoked by a segregated decision regarding each upcoming test item. In Experiment 2 perspective was evoked through differential priming. Across both experiments, when given a monetary incentive to succeed, the adoption of a narrow perspective increased cheating, as evidenced by overall higher reported success rates.

Consumers make trade-offs when they choose between utilitarian and hedonic products. The former is practical, instrumental, and functional, whereas the latter is sensational and experiential. Prior research shows that people feel more guilt when they contemplate on engaging in hedonic consumption than engaging in utilitarian consumption. The current research investigates the effect of decision targets (i.e., making decisions for oneself or another person) on preferences for utilitarian and hedonic products. Consumers deciding for others were more likely to choose hedonic over utilitarian options than were consumers deciding for themselves. Utilitarian/hedonic was manipulated either through attributes of similar products (Study 1) or through different products (Study 2). Anticipatory guilt accounted for such self–other difference (Study 2). In particular, anticipatory guilt triggered by contemplating hedonic consumption is less for consumers who made choices for others than for those who made choices for themselves. In sum, preferences for utilitarian and hedonic products depend on decision targets.

Physicians often encounter diagnostic problems with ambiguous and conflicting features. What are they likely to do in such situations? We presented a diagnostic scenario to 84 family physicians and traced their information gathering, diagnoses and management. The scenario contained an ambiguous feature, while the other features supported either a cardiac or a musculoskeletal diagnosis. Due to the risk of death, the cardiac diagnosis should be considered and managed appropriately. Forty-seven participants (56%) gave only a musculoskeletal diagnosis and 45 of them managed the patient inappropriately (sent him home with painkillers). They elicited less information and spent less time on the scenario than those who diagnosed a cardiac cause. No feedback was provided to participants. Stimulated recall with 52 of the physicians revealed differences in the way that the same information was interpreted as a function of the final diagnosis. The musculoskeletal group denigrated important cues, making them coherent with their representation of a pulled muscle, whilst the cardiac group saw them as evidence for a cardiac problem. Most physicians indicated that they were fairly or very certain about their diagnosis. The observed behaviours can be described as coherence-based reasoning, whereby an emerging judgment influences the evaluation of incoming information, so that confident judgments can be achieved even with ambiguous, uncertain and conflicting information. The role of coherence-based reasoning in medical diagnosis and diagnostic error needs to be systematically examined.

In optimal stopping problems, decision makers are assumed to search randomly to learn the utility of alternatives; in contrast, in one-shot multi-attribute utility optimization, decision makers are assumed to have perfect knowledge of utilities. We point out that these two contexts represent the boundaries of a continuum, of which the middle remains uncharted: How should people search intelligently when they possess imperfect information about the alternatives? We assume that decision makers first estimate the utility of each available alternative and then search the alternatives in order of their estimated utility until expected benefits are outweighed by search costs. We considered three well-known models for estimating utility: (i) a linear multi-attribute model, (ii) equal weighting of attributes, and (iii) a single-attribute heuristic. We used 12 real-world decision problems, ranging from consumer choice to industrial experimentation, to measure the performance of the three models. The full model (i) performed best on average but its simplifications (ii and iii) also had regions of superior performance. We explain the results by analyzing the impact of the models’ utility order and estimation error.