To study intertemporal choices, researchers typically instruct subjects to choose between smaller and sooner (SS) and larger and later (LL) rewards (e.g., gaining CNY 210 in a week vs. gaining CNY 250 in five weeks). People generally tend to discount steeply and prefer SS to LL rewards in such situations. Jiang, Hu and Zhu (2014) recently showed that adding upfront losses or gains to both SS and LL rewards can reduce people’s discounting, and they provided several possible accounts for this effect, including the salience account and the time scale hypothesis. In the current paper, based on the upfront money effect found in Jiang et al. (2014), we further showed that the effect of discounting decreasing could be extended to adding dated-money between SS and LL rewards and after LL rewards. The results helped us exclude both the time scale hypothesis and another possible explanation: preference for improvement. We hypothesized that all the current findings (recorded in this paper and in Jiang et al.) could be accommodated well using the salience account.

Schelling (1969, 1971a,b, 1978) observed that macro-level patterns do not necessarily reflect micro-level intentions, desires or goals. In his classic model on neighborhood segregation which initiated a large and influential literature, individuals with no desire to be segregated from those who belong to other social groups nevertheless wind up clustering with their own type. Most extensions of Schelling’s model have replicated this result. There is an important mismatch, however, between theory and observation, which has received relatively little attention. Whereas Schelling-inspired models typically predict large degrees of segregation starting from virtually any initial condition, the empirical literature documents considerable heterogeneity in measured levels of segregation. This paper introduces a mechanism that can produce significantly higher levels of integration and, therefore, brings predicted distributions of segregation more in line with real-world observation. As in the classic Schelling model, agents in a simulated world want to stay or move to a new location depending on the proportion of neighbors they judge to be acceptable. In contrast to the classic model, agents’ classifications of their neighbors as acceptable or not depend lexicographically on recognition first and group type (e.g., ethnic stereotyping) second. The FACE-recognition model nests classic Schelling: When agents have no recognition memory, judgments about the acceptability of a prospective neighbor rely solely on his or her group type (as in the Schelling model). A very small amount of recognition memory, however, eventually leads to different classifications that, in turn, produce dramatic macro-level effects resulting in significantly higher levels of integration. A novel implication of the FACE-recognition model concerns the large potential impact of policy interventions that generate modest numbers of face-to-face encounters with members of other social groups.

The opportunity to tell a white lie (i.e., a lie that benefits another person) generates a moral conflict between two opposite moral dictates, one pushing towards telling the truth always and the other pushing towards helping others. Here we study how people resolve this moral conflict. What does telling a white lie signal about a person’s pro-social tendencies? To answer this question, we conducted a two-stage 2x2 experiment. In the first stage, we used a Deception Game to measure aversion to telling a Pareto white lie (i.e., a lie that helps both the liar and the listener), and aversion to telling an altruistic white lie (i.e., a lie that helps the listener at the expense of the liar). In the second stage we measured altruistic tendencies using a Dictator Game and cooperative tendencies using a Prisoner’s dilemma. We found three major results: (i) both altruism and cooperation are positively correlated with aversion to telling a Pareto white lie; (ii) both altruism and cooperation are negatively correlated with aversion to telling an altruistic white lie; (iii) men are more likely than women to tell an altruistic white lie, but not to tell a Pareto white lie. Our results shed light on the moral conflict between prosociality and truth-telling. In particular, the first finding suggests that a significant proportion of people have non-distributional notions of what the right thing to do is, irrespective of the economic consequences, they tell the truth, they cooperate, they share their money.

Environmental events such as natural disasters may influence the public's affective reactions and decisions. Shortly after the 2004 Tsunami disaster we assessed how affect elicited by thinking about this disaster influenced risk perceptions and future time perspective in Swedish undergraduates not directly affected by the disaster. An experimental manipulation was used to increase the salience of affect associated with the disaster. In Study 1 we found that participants reminded about the tsunami had a sense that their life was more finite and included fewer opportunities than participants in the control condition (not reminded about the tsunami). In Study 2 we found similar effects for risk perceptions. In addition, we showed that manipulations of ease-of-thought influenced the extent to which affect influenced these risk perceptions, with greater ease of thoughts being associated with greater perceived risks.

Following up on a recent debate, we examined advice taking in dyads compared to individuals in a set of three studies (total N = 303 dyads and 194 individuals). Our first aim was to test the replicability of an important previous finding, namely that dyads heed advice less than individuals because they feel more confident in the accuracy of their initial judgments. Second, we aimed to explain dyads’ behavior based on three premises: first, that dyads understand that the added value of an outside opinion diminishes when the initial pre-advice judgment is made by two judges rather than one judge (given that the dyad members’ opinions are independent of each other); second, that they fail to recognize when the assumption of independence of opinions does not hold; and third, that the resistance to advice commonly observed in individuals persists in groups but is neither aggravated nor ameliorated by the group context. The results of our studies show consistently that previous findings on advice taking in dyads are replicable. They also support our hypothesis that groups exhibit a general tendency to heed advice less than individuals, irrespective of whether the accuracy of their initial judgments warrants this behavior. Finally, based on the three assumptions mentioned above, we were able to make accurate predictions about advice taking in dyads, prompting us to postulate a general model of advice taking in groups of arbitrary size.

Whereas people’s reasoning is often biased by intuitive stereotypical associations, recent debiasing studies suggest that performance can be boosted by short training interventions that stress the underlying problem logic. The nature of this training effect remains unclear. Does training help participants correct erroneous stereotypical intuitions through deliberation? Or does it help them develop correct intuitions? We addressed this issue in four studies with base-rate neglect and conjunction fallacy problems. We used a two-response paradigm in which participants first gave an initial intuitive response, under time pressure and cognitive load, and then gave a final response after deliberation. Studies 1A and 2A showed that training boosted performance and did so as early as the intuitive stage. After training, most participants solved the problems correctly from the outset and no longer needed to correct an initial incorrect answer through deliberation. Studies 1B and 2B indicated that this sound intuiting persisted over at least two months. The findings confirm that a short training can debias reasoning at an intuitive “System 1” stage and get reasoners to favour logical over stereotypical intuitions.

Recent research suggests that communicating probabilities numerically rather than verbally benefits forecasters’ credibility. In two experiments, we tested the reproducibility of this communication-format effect. The effect was replicated under comparable conditions (low-probability, inaccurate forecasts), but it was reversed for low-probability accurate forecasts and eliminated for high-probability forecasts. Experiment 2 further showed that verbal probabilities convey implicit recommendations more clearly than probability information, whereas numeric probabilities do the opposite. Descriptively, the findings indicate that the effect of probability words versus numbers on credibility depends on how these formats convey directionality differently, how directionality implies recommendations even when none are explicitly given, and how such recommendations correspond with outcomes. Prescriptively, we propose that experts distinguish forecasts from advice, using numeric probabilities for the former and well-reasoned arguments for the latter.

Interrupted time-series graphs are often judged by eye. Such a graph might show, for example, patient symptom severity (y) on each of several days (x) before and after a treatment was implemented (interruption). Such graphs might be prone to systematic misjudgment because of serial dependence, where random error at each timepoint persists into later timepoints. An earlier study (Matyas & Greenwood, 1990) showed evidence of systematic misjudgment, but that study has often been discounted due to methodological concerns. We address these concerns and others in two experiments. In both experiments, serial dependence increased mistaken judgments that the interrupting event led to a change in the outcome, though the pattern of results was less extreme than in previous work. Receiver operating characteristics suggested that serial dependence both decreased discriminability and increased the bias to decide that the interrupting event led to a change. This serial dependence effect appeared despite financial incentives for accuracy, despite feedback training, and even in participants who had graduate training relevant to the task. Serial dependence could cause random error to be misattributed to real change, thereby leading to judgments that interventions are effective even when they are not.

Some people find it more difficult to delay rewards than others. In three experiments, we tested a “future self-continuity” hypothesis that individual differences in the perception of one’s present self as continuous with a future self would be associated with measures of saving in the laboratory and everyday life. Higher future self-continuity (assessed by a novel index) predicted reduced discounting of future rewards in a laboratory task, more matches in adjectival descriptions of present and future selves, and greater lifetime accumulation of financial assets (even after controlling for age and education). In addition to demonstrating the reliability and validity of the future self-continuity index, these findings are consistent with the notion that increased future self-continuity might promote saving for the future.

Despite vigorous research on risk communication, little is known about the social forces that drive these choices. Erev, Wallsten, & Neal (1991) showed that forecasters learn to select verbal or numerical probability estimates as a function of which mode yields on average the larger group payoffs. We extend the result by investigating the effect of group size on the speed with which forecasters converge on the better communication mode. On the basis of social facilitation theory we hypothesized that small groups induce less arousal and anxiety among their members than do large groups when performing new tasks, and therefore that forecasters in small groups will learn the better communication mode more quickly. This result obtained in Experiment 1, which compared groups of size 3 to groups of size 5 or 6. To test whether social loafing rather than social facilitation was mediating the effects, Experiment 2 compared social to personal feedback holding group size constant at 3 members. Learning was faster in the personal feedback condition, suggesting that social facilitation rather than loafing underlay the results.

Indoor climate interventions are often motivated from a worker comfort and productivity perspective. However, the relationship between indoor climate and human performance remains unclear. We assess the effect of indoor climate factors on human performance, focusing on the impact of indoor temperature on decision processes. Specifically, we expect heat to negatively influence higher cognitive rational processes, forcing people to rely more on intuitive shortcuts. In a laboratory setting, participants (N=257) were exposed to a controlled physical environment with either a hot temperature (28° C) or a neutral temperature (22° C) over a two-hour period, in which a battery of validated tests were conducted. We find that heat exposure did not lead to a difference in decision quality. We did find evidence for a strong gender difference in self-report, such that only men expect that high temperature leads to a significant decline in performance, which does in fact not materialize. These results cast doubt on the validity of self-report as a proxy for performance under different indoor climate conditions.

In reply to Dalton (2016), we argue that bullshit is defined in terms of how it is produced, not how it is interpreted. We agree that it can be interpreted as profound by some readers (and assumed as much in the original paper). Nonetheless, we present additional evidence against the possibility that more reflective thinkers are more inclined to interpret bullshit statements as profound.

Public understanding of the water system is vital in confronting contemporary water challenges, as public support is necessary for implementing measures to address shortages and repair infrastructure. In this study, university student participants (N = 457) were asked to draw diagrams illustrating how water reaches the tap in an average home in the U.S. and is then returned to the natural environment. We also conducted an expert elicitation (N = 15) to create a simplified, accurate diagram by which to code each student drawing. Results showed major gaps in understanding, where 29% of the student participants did not draw a water treatment plant, 64% did not draw a wastewater treatment plant, and 1 in 5 participants depicted untreated wastewater returning to the natural environment. For the majority of non-environmental students, the water system stops at the home. These gaps reveal a critical area for public environmental education efforts.

The Deliberation without Attention (DWA) effect refers to apparent improvements in decision-making following a period of distraction. It has been presented as evidence for beneficial unconscious cognitive processes. We identify two major concerns with this claim: first, as these demonstrations typically involve subjective preferences, the effects of distraction cannot be objectively assessed as beneficial; second, there is no direct evidence that the DWA manipulation promotes unconscious decision processes. We describe two tasks based on the DWA paradigm in which we found no evidence that the distraction manipulation led to decision processes that are subjectively unconscious, nor that it reduced the influence of presentation order upon performance. Crucially, we found that a lack of awareness of decision process was associated with poorer performance, both in terms of subjective preference measures used in traditional DWA paradigm and in an equivalent task where performance can be objectively assessed. Therefore, we argue that reliance on conscious memory itself can explain the data. Thus the DWA paradigm is not an adequate method of assessing beneficial unconscious thought.

We present a novel method of judgment analysis called Error Parsing, based upon an alternative method of implementing Social Judgment Theory (SJT). SJT and Error Parsing both posit the same three components of error in human judgment: error due to noise, error due to cue weighting, and error due to inconsistency. In that sense, the broad theory and framework are the same. However, SJT and Error Parsing were developed to answer different questions, and thus use different methodological approaches in the analysis of error. While SJT makes use of correlational methods, Error Parsing uses absolute differences. We discuss the similarities and differences between the methodologies and provide empirical evidence for the utility of the Error Parsing technique.Keywords: Social Judgment Theory, judgment, error.

There is a growing interest in studying individual differences in choices that involve trading off reward amount and delay to delivery because such choices have been linked to involvement in risky behaviors, such as substance abuse. The most ubiquitous proposal in psychology is to model these choices assuming delayed rewards lose value following a hyperbolic function, which has one free parameter, named discounting rate. Consequently, a fundamental issue is the estimation of this parameter. The traditional approach estimates each individual’s discounting rate separately, which discards individual differences during modeling and ignores the statistical structure of the population. The present work adopted a different approximation to parameter estimation: each individual’s discounting rate is estimated considering the information provided by all subjects, using state-of-the-art Bayesian inference techniques. Our goal was to evaluate whether individual discounting rates come from one or more subpopulations, using Mazur’s (1987) hyperbolic function. Twelve hundred eighty-four subjects answered the Intertemporal Choice Task developed by Kirby, Petry and Bickel (1999). The modeling techniques employed permitted the identification of subjects who produced random, careless responses, and who were discarded from further analysis. Results showed that one-mixture hierarchical distribution that uses the information provided by all subjects suffices to model individual differences in delay discounting, suggesting psychological variability resides along a continuum rather than in discrete clusters. This different approach to parameter estimation has the potential to contribute to the understanding and prediction of decision making in various real-world situations where immediacy is constantly in conflict with magnitude.

Two studies replicate the anomaly identified by Frederick, Meyer and Levis (2015) and Frederick, Levis, Malliaris and Meyer (2018). People show typical risk averse behavior by valuing risk below the focal lottery’s expected value, but they do not bid above its expected value for the hedge that eliminates the risk. Following the authors, we conduct finer analyses by separating participants into two groups – “experts” who understand that acquiring the hedge makes winning certain versus “novices” who do not understand the winning implications of acquiring the hedge. We find that (1) “experts” are more inclined to purchase the hedge compared to the “novices” and (2) unlike the “novices,” they value the hedge significantly more than the risk instrument, but only if they are given the risk instrument free of charge. However, even there, the hedge valuations are significantly less than the lottery’s expected value suggesting that the anomaly described in Frederick et al. (2015, 2018) is robust and likely to affect the way our discipline conceptualizes and models risk behavior.

When given a desirable item, people have a tendency to value this owned item more than an equally-desirable, unowned item. Conversely, when the endowed item is undesirable, in some circumstances people have a tendency to swap it for an equally undesirable item, a phenomenon known as the reversed endowment effect. The fact that the endowment effect can reverse for undesirable items has been taken as evidence against loss aversion being the underlying cause of the endowment effect. This study represents the first time that the reversed endowment effect has been observed for choices with real consequences. However, we find that the reversed endowment effect occurs only when participants’ ability to compare the available choice options is limited. We further show that these endowment reversals can also be induced for choices between desirable options and removed for choices between undesirable options by manipulating the expectations participants have when making a choice. Finally, we show that our data, including endowment reversals, can in principle be explained by loss aversion.

Difficulty making decisions is one of the symptoms of the depressive illness. Previous research suggests that depressed individuals may make decisions that differ from those made by the non-depressed, and that they use sub-optimal decision-making strategies. For this study we constructed an instrument that aims to measure a variety of decision-making styles as well as the respondent’s view of him or herself as a decision-maker (decisional self-esteem). These styles and estimates of decisional self-esteem were then related to depressive symptoms. Depressive symptomatology correlated negatively with perception of self as a decision-maker. Those with higher depression severity scores characterized themselves as being more anxious about decisions, and more likely to procrastinate. They also reported using fewer productive decision-making strategies, depending more on other people for help with decisions, and relying less on their own intuitions when making decisions. Further research is needed to determine the extent to which these decision-making styles are antecedents to depressive symptomatology or are instead products of, or aspects of, the phenomenology associated with depression.

This paper uses the COVID-19 health crisis to study how individual preferences respond to generalized traumatic events. We review previous literature on natural and man-made disasters. Using incentive-compatible tasks, we simultaneously estimate risk and ambiguity aversion, time discounting, present bias, and prudence parameters before, during, and after the COVID-19 lockdown in France. We find patience, risk aversion, and ambiguity aversion fell during lockdown, then gradually returned toward their initial levels 4 months later. These results have implications for health and economic policies, and deepen our understanding of the responses – and resilience – of economic preferences to traumatic events.