Interdependent Utilities: How Social Ranking Affects Choice Behavior

Organization in hierarchical dominance structures is prevalent in animal societies, so a strong preference for higher positions in social ranking is likely to be an important motivation of human social and economic behavior. This preference is also likely to influence the way in which we evaluate our outcome and the outcome of others, and finally the way we choose. In our experiment participants choose among lotteries with different levels of risk, and can observe the choice that others have made. Results show that the relative weight of gains and losses is the opposite in the private and social domain. For private outcomes, experience and anticipation of losses loom larger than gains, whereas in the social domain, gains loom larger than losses, as indexed by subjective emotional evaluations and physiological responses. We propose a theoretical model (interdependent utilities), predicting the implication of this effect for choice behavior. The relatively larger weight assigned to social gains strongly affects choices, inducing complementary behavior: faced with a weaker competitor, participants adopt a more risky and dominant behavior

A hypothesis about the biological basis of expert intuition

It is well established that intuition plays an important role in experts' decision making and thinking generally. However, the theories that have been developed at the cognitive level have limits in their explanatory power and lack detailed explanation of the underlying biological mechanisms. In this paper, we bridge this gap by proposing that Hebb's (1949) concept of cell assembly is the biological realization of Simon's (1974) concept of chunking. This view provides mechanisms at the biological level that are consistent with both biological and psychological findings. To further address the limits of previous theories, we introduce emotions as a component of intuition by showing how they modulate the perception-memory interaction. The idea that intuition lies at the crossroads between perception, knowledge, and emotional modulation sheds new light on the phenomena of expertise and intuition