Signal detection theory (SDT) was developed to analyze the behavior of a single judge but also can be used to analyze decisions made by organizations or other social systems. SDT quantifies the ability to distinguish between signal and noise by separating accuracy of the detection system from response bias—the propensity to over-warn (too many false positives) or under-warn (too many misses). We apply SDT techniques to national and state-level data sets to analyze the ability of the child welfare services systems to detect instances of child maltreatment. Blacks have higher rates of referral and the system is less accurate for them than for Whites or Hispanics. The incidence of false positives—referrals leading to unsubstantiated findings—is higher for Blacks than for other groups, as is the incidence of false negatives—children for whom no referral was made but who are in fact neglected or abused. The rate of true positives–children for whom a referral was made and for whom the allegation was substantiated–is higher for Blacks. Values of d′ (signal strength) are roughly the same for Whites, Blacks, and Hispanics but there are pronounced group differences in C (a measure of the location of the decision threshold). Analyses show that the child welfare services system treats Blacks differently from Hispanics and Whites in ways that cannot be justified readily in terms of objective measures of group differences. This study illustrates the potential for JDM techniques such as SDT to contribute to understanding of system-level decision making processes.

Often to the detriment of human decision making, people are prone to an impact bias when making affective forecasts, overestimating the emotional consequences of future events. The cognitive processes underlying the impact bias, and methods for correcting it, have been debated and warrant further exploration. In the present investigation, we examined both individual differences and contextual variables associated with cognitive processing in affective forecasting for an election. Results showed that the perceived importance of the event and working memory capacity were both associated with an increased impact bias for some participants, whereas retrieval interference had no relationship with bias. Additionally, an experimental manipulation effectively reduced biased forecasts, particularly among participants who were most distracted thinking about peripheral life events. These findings have theoretical implications for understanding the impact bias, highlight the importance of individual differences in affective forecasting, and have ramifications for future decision making research. The possible functional role of the impact bias is discussed within the context of evolutionary psychology.

We investigated the role of individual differences in cognitive reflection in decision making. We measured the performance of 157 participants in the cognitive reflection test (Frederick, 2005) and a number of decision-making tasks. We examined the relation of cognitive reflection with performance in tasks that assess correspondence (as distinct from coherence), such as predicting the ratings of chess players. We found significant correlations between cognitive reflection and all the estimation measures in correspondence tasks. Our results suggest that cognitive reflection is a thinking disposition that includes more characteristics than originally proposed by Frederick (2005). We proposed that cognitive reflection is related to the concept of actively open-minded thinking (Baron, 1985, 2008). We concluded that cognitive reflection is a thinking disposition that interacts with knowledge, domain-specific heuristics and characteristics of the environment and that it may play an essential role in the adaptation of the decision maker to different environments and situations.

“Waste not want not” expresses our culture’s aversion to waste. “I could have gotten the same thing for less” is a sentiment that can diminish pleasure in a transaction. We study people’s willingness to “pay” to avoid this spoiler. In one scenario, participants imagined they were looking for a rental apartment, and had bought a subscription to an apartment listing. If a cheaper subscription had been declined, respondents preferred not to discover post hoc that it would have sufficed. Specifically, they preferred ending their quest for the ideal apartment after seeing more, rather than fewer, apartments, so that the length of the search exceeds that available within the cheaper subscription. Other scenarios produced similar results. We conclude that people may sometimes prefer to be wasteful in order to avoid feeling wasteful.

Maximizing is characterized by aspirations for the highest standards. The current study explored the relationship between maximizing and risk-taking tendencies in decisions subject to risk. We propose that people first refer to expectation (i.e., the overall utility expected from an alternative) when taking risky decisions. If expectation clearly identifies the best option, maximizing will not be correlated with risk-taking tendencies. If not, people refer to maximizing to reach a decision. Maximizing will be positively associated with risk-taking tendencies because the “upper bound” of risky options helps achieve the goal of seeking the best. Four studies showed that risk-taking tendencies increased with maximizing when the options had similar expectations (Studies 1 to 3). When expectations between options were clearly different (vs. similar), the positive relationship between maximizing and risk-taking tendencies was reduced (Study 4). These findings provide an insight into how maximizing is related to risk seeking.

When decisions involve opting in or out of competition many decision makers will opt-in even when doing so leads to losses on average. In the current paper, we examine the generality of this effect in risky choices not involving competition. We found that re-framing a sure (certain) zero option as an option to observe the results of the other options without choosing would lead to increased consequential choice (i.e., increased selection of risky options rather than the zero option). Specifically, in two studies we compared the rate of consequential choice in a novel paradigm where decision makers decide to observe or to choose with consequence from a set of risky options (decisions-to-engage) to a full-feedback decisions-from-feedback paradigm where the choice set included a labeled sure zero option. Compared to decisions-from-feedback, participants were more likely to choose from mixed (risky) gambles with consequence (over a zero outcome) in decisions-to-engage. This occurred irrespective of whether doing so was advantageous (i.e., when choice led to monetary gains on average) or disadvantageous (i.e., when choice led to monetary losses on average), and when descriptions of the options outcomes and probabilities were provided (Study 2). These findings provide an important boundary condition for the positive effects of experience on the quality of choice, and suggest that decision makers’ preference for agency can sometimes induce poorer choices.

Online marketplaces allow consumers to leave reviews about the products they purchase, which are visible to potential customers and competitors. While the impact of reviews on valuations of worth and purchasing decisions has been intensively studied, little is known about how the reviews themselves are attended to, and the relation between attention and valuations. In three studies we use eye-tracking methodologies to investigate attention in subjective monetary valuations of consumer goods. We find that, when evaluating consumer goods, individuals’ attention to ratings are related to their frequencies, attention to positive or negative information is related to subjective valuations, and that perspective (owner vs.non-owner) influences the type of information attended to. These findings extend previous research regarding the valuations of risky prospects as implemented in abstract monetary gambles and suggest that similar cognitive processes might underlie both types of tasks.

We tested the effectiveness of performance-based incentive structures using three incentive structures — commission base, best only and flat fee — and two levels of context — no context and house-selling — in an experiment in which participants made decisions in a variant of the secretary problem. Key measures of performance were the amount of search and the rounds in which the very best (optimal) offer was chosen. We found that having a commission-based proportional incentive did not produce better performance than having a flat payment for any of the performance measures considered. However, another performance-based incentive — the best only — increased the length of their searches and led to more optimal offers. These results applied both when there was no context and when the context was selling a house.

When people predict their future behavior, they tend to place too much weight on their current intentions, which produces an optimistic bias for behaviors associated with currently strong intentions. More realistic self-predictions require greater sensitivity to situational barriers, such as obstacles or competing demands, that may interfere with the translation of current intentions into future behavior. We consider three reasons why people may not adjust sufficiently for such barriers. First, self-predictions may focus exclusively on current intentions, ignoring potential barriers altogether. We test this possibility, in three studies, with manipulations that draw greater attention to barriers. Second, barriers may be discounted in the self-prediction process. We test this possibility by comparing prospective and retrospective ratings of the impact of barriers on the target behavior. Neither possibility was supported in these tests, or in a further test examining whether an optimally weighted statistical model could improve on the accuracy of self-predictions by placing greater weight on anticipated situational barriers. Instead, the evidence supports a third possibility: Even when they acknowledge that situational factors can affect the likelihood of carrying out an intended behavior, people do not adequately moderate the weight placed on their current intentions when predicting their future behavior.

Anchoring effects, the assimilation of numerical estimates to previously considered standards, are highly robust. Two studies examined whether mood and expertise jointly moderate the magnitude of anchoring. Previous research has demonstrated that happy mood induces judges to process information in a less thorough manner than sad mood, which means that happy judges tend to be more susceptible to unwanted influences. However, this may not be true for anchoring effects. Because anchoring results from an elaborate process of selective knowledge activation, more thorough processing should lead to more anchoring; as a result, sad judges should show stronger anchoring effects than happy judges and happy judges may even remain uninfluenced by the given anchors. Because information processing of experts may be relatively independent of their mood, however, mood may influence anchoring only in non-experts. Results of two studies on legal decision-making (Study 1) and numeric estimates (Study 2) are consistent with these expectations. These findings suggest that, at least for non-experts, positive mood may eliminate the otherwise robust anchoring effect.

Participants drank either regular root beer or sugar-free diet root beer before working on a probability-learning task in which they tried to predict which of two events would occur on each of 200 trials. One event (E1) randomly occurred on 140 trials, the other (E2) on 60. In each of the last two blocks of 50 trials, the regular group matched prediction and event frequencies. In contrast, the diet group predicted E1 more often in each of these blocks. After the task, participants were asked to write down rules they used for responding. Blind ratings of rule complexity were inversely related to E1 predictions in the final 50 trials. Participants also took longer to advance after incorrect predictions and before predicting E2, reflecting time for revising and consulting rules. These results support the hypothesis that an effortful controlled process of normative rule-generation produces matching in probability-learning experiments, and that this process is a function of glucose availability.

Drafting is a competitive task in which a set of decision makers choose from a set of resources sequentially, with each resource becoming unavailable once selected. How people make these choices raises basic questions about human decision making, including people’s sensitivity to the statistical regularities of the resource environment, their ability to reason about the behavior of their competitors, and their ability to execute and adapt sophisticated strategies in dynamic situations involving uncertainty. Sports provides one real-world example of drafting behavior, in which a set of teams draft players from an available pool in a well-regulated way. Fantasy sport competitions provide potentially large data sets of drafting behavior. We study fantasy football drafting behavior from the 2017 National Football League (NFL) season based on 1350 leagues hosted by the http://sleeper.app platform. We find people are sensitive to some important environmental regularities in the order in which they draft players, but also present evidence that they use a more narrow range of strategies than is likely optimal in terms of team composition. We find little to no evidence for the use of the complicated but well-documented strategy known as handcuffing, and no evidence of irrational influence from individual-level biases for different NFL teams. We do, however, identify a set of circumstances for which there is clear evidence that people’s choices are strongly influenced by the immediately preceding choice made by a competitor.

We report a preliminary study that compared decisions made in an oxygen depleted environment with those made in a normoxic environment. Participants were presented with a series of choices that involved either losses or gains. For each choice they were forced to choose between a sure thing and a gamble of the same expected value. For choices involving losses, participants were more risk seeking in the oxygen depleted environment; for those involving gains, no difference was found.

Adding to prior literature that has examined the relationship between maximization and dissatisfaction, the present research suggests that maximizers, as defined by the original maximization scale, are unhappier decision makers than satisficers because maximizers fail to adequately handle dissonant experiences. Throughout three studies that use different conceptualization and measurement of maximization, we show that maximizers are more vulnerable to negative feedback about one’s choice such that they decrease positivity toward the chosen option to a greater level than satisficers. However, this effect was mainly driven by the decision difficulty factor in the conceptualization of maximization. When decision difficulty was conceptualized as a defining component of maximization (Study 1 and 2), “maximizers” show greater positivity drop in the face of negative feedback. However, in the absence of a decision difficulty component, a recently proposed two-component model of maximization (the goal to get the best and search for alternatives; Cheek & Schwartz, 2016) did not play a significant role in predicting positivity drop, while perceived decision difficulty did (Study 3). Together our findings suggest that previously reported contradictory outcomes of maximization may be due to inconsistent conceptualization and measurement, especially treating decision difficulty as a defining component of maximization.

The paper extends research on fixed-pie perceptions by suggesting that disputants may prefer proposals that are perceived to be equally attractive to both parties (i.e., balanced) rather than one-sided, because balanced agreements are seen as more likely to be successfully implemented. We test our predictions using data on Israeli support for the Geneva Accords, an agreement for a two state solution negotiated by unofficial delegations of Israel and the Palestinian Authority in 2003. The results demonstrate that Israelis are more likely to support agreements that are seen favorably by other Israelis, but — contrary to fixed-pie predictions — Israeli support for the accords does not diminish simply because a majority of Palestinians favors (rather than opposes) the accords. We show that implementation concerns create a demand among Israelis for balance in the degree to which each side favors (or opposes) the agreement. The effect of balance is noteworthy in that it creates considerable support for proposals even when a majority of Israelis and Palestinians oppose the deal.

In this paper I explore how the evolution of emotional expression and co-operative planning in humans may inform the way they communicate about risks, and what implication this may have for models of rationality in risk communication. In particular, I focus on aspects of human language that enable successful co-ordination around shared tasks that involve the management of uncertainty by a group. I distinguish between performative (action-oriented) and constative (description-oriented) aspects of human communication, and argue that the human logical vocabulary of conditionals, quantifiers and probability expressions often conveys pragmatic signals that implicitly encourage or discourage a course of action that is under discussion. I review some studies that illustrate this perspective by highlighting the role of emotional undertone in risk communication and management, and show how it differs from existing models of risk communication and decision-making.

Time preference reversal refers to systematic inconsistencies between preferences and bids for intertemporal options. From the two eye-tracking studies (N1 = 60, N2 = 110), we examined the underlying mechanisms of time preference reversal. We replicated the reversal effect in which individuals facing a pair of intertemporal options choose the smaller-sooner option but assign a higher value to the larger-later one. Results revealed that the mean fixation duration and the proportion of gaze time on the outcome attribute varied across the choice and bid tasks. In addition, time preference reversals correlated with individual differences in maximizing tendencies. Findings support the contingent weighting hypothesis and strategy compatibility hypothesis and allow for improved theoretical understanding of the potential mechanisms and processes involved in time preference reversals.

We asked jurors awaiting trial assignment to listen to a recorded synopsis of an authentic criminal trial and to make a choice among 4 verdict possibilities. Each participant juror then deliberated with another juror whose verdict choice differed, as a microcosm of a full jury’s deliberation. Analysis of the transcripts of these deliberations revealed both characteristics general to the sample and characteristics for which variation appeared across participants. Findings were interpreted in terms of a model of juror reasoning as entailing theory-evidence coordination. More frequently than challenging the other’s statements, we found, a juror agreed with and added to or elaborated them. Epistemological stance — whether knowledge was regarded as absolute and certain or subject to interpretation — predicted several characteristics of discourse. Absolutists were less likely to make reference to the verdict criteria in their discourse. Those who did so, as well as those who made frequent reference to the evidence, were more likely to persuade their discourse partners.