Formal Models of Differential Framing Effects in Decision Making Under Risk

An intriguing finding in the decision-making literature is that, when people have to choose between sure and risky options of equal expected value, they typically take more risks when decisions are framed as losses instead of gains (Tversky &amp; Kahneman, 1981). This framing effect is robust and has important implications for health, finance, and politics. However, theoretical debate exists on the origins of this effect. Moreover, pronounced task-related, individual, and developmental differences exist in the magnitude of the effect. These two issues—theoretical debate and differential framing effects— can be solved together, as an adequate theory of the framing effect should both describe the effect itself and describe differences therein. Therefore, we compare four theories on their capacity to describe differential framing effects: cumulative prospect theory (CPT), fuzzy trace theory (FTT), dual process theory, and a hybrid theory (HT) incorporating elements from lexicographic theory and fuzzy trace theory. First, in a theoretical analysis and empirical review, we build on recent advances in the fields of decision making, brain– behavior relationships, and cognitive development. Second, in an empirical study, we directly compare these theories by using a new experimental task and new analytic approach in which we use hierarchical Bayesian model-based mixture analysis of theories. Taken together, results indicate that differential framing effects are best described by the notion that the majority of decision makers decide according to the hybrid theory, and a sizable minority according to cumulative prospect theory and fuzzy trace theory. We discuss implications of these results for our understanding of the framing effect, and for decision making in general.</p

Cardiac and electro-cortical concomitants of social feedback processing in women

This study provides a joint analysis of the cardiac and electro-cortical-early and late P3 and feedback-related negativity (FRN)-responses to social acceptance and rejection feedback. Twenty-five female participants performed on a social- and age-judgment control task, in which they received feedback with respect to their liking and age judgments, respectively. Consistent with previous reports, results revealed transient cardiac slowing to be selectively prolonged to unexpected social rejection feedback. Late P3 amplitude was more pronounced to unexpected relative to expected feedback. Both early and late P3 amplitudes were shown to be context dependent, in that they were more pronounced to social as compared with non-social feedback. FRN amplitudes were more pronounced to unexpected relative to expected feedback, irrespective of context and feedback valence. This pattern of findings indicates that social acceptance and rejection feedback have widespread effects on bodily state and brain function, which are modulated by prior expectancies

On axioms of choice:A mathematical modelling approach to study variability in decision making

The overarching aim of this thesis is to do some right to the complexity of human decision making and the study thereof. Specifically, this thesis includes three examples of how to advance the study of, and to increase insight in, individual and contextual variability in decision making under risk. The focus of each study is on candidate psychological constructs and factors that are assumed to be involved in, or to influence, variability in decision making. The psychological constructs of interest cannot be directly observed or measured; these are conceptualized as latent variables, derived by adopting a mathematical modelling approach. Results across the example studies yield both conceptual and methodological conclusions. With respect to the former, novel candidate psychological constructs and factors are indicated that may be relevant in studying variability in decision making under risk, among both adolescents and adults. In addition, the relevance of the framework of the adaptive decision maker is underscored. With respect to the latter, the benefits are shown of adopting a latent variable conceptualization of psychological constructs and of applying mathematical modelling. Moreover, specific aspects of study measures are indicated that should be taken into consideration in order to optimize the choice of measures in studying variability in decision making under risk