Experience-Based Decisions and Brain Activity: Three New Gaps and Partial Answers

Experience-based decisions can be defined as decisions emanating from direct or vicarious reinforcements that were received in the past. Typically, in experience-based decision tasks an agent repeatedly makes choices and receives outcomes from the available alternatives, so that choices are based on past experiences, with no explicit description of the payoff distributions from which the outcomes are drawn. The study of experience-based decisions has long roots in the works of mathematical psychologists during the 1950s and 1960s of the last century (e.g., Estes and Burke, 1953; Bush and Mosteller, 1955; Katz, 1964). This type o

To Take Risk is to Face Loss: A Tonic Pupillometry Study

The construct of risk taking is studied through the prism of the relation between tonic arousal and risk taking behavior. Several theories have proposed that high aroused individuals tend to exhibit risk aversion. We posit that this arousal–behavior association is activated much more strongly in risks with losses, as losses increase arousal and trigger relevant traits associated with the sensitivity to risk. In three studies we examined risk taking in experience-based decision tasks, with either token losses or relative-losses (in the gain domain). In Study 1 we found a negative correlation between pre-task pupil diameter and risk taking in the loss domain but not in the gain domain. In Study 2 we re-analyzed a previous pupillometry dataset involving symmetric mixed gains and losses. We found that the negative correlation in this mixed condition emerged even while the participants did not show loss aversion. This finding was replicated in Study 3. Thus, the effect of losses on arousal provides sufficient conditions for the moderation of the tonic arousal–behavior association. The findings suggest an important role for losses in the psychological and physiological experience of risk

The endowment effect and beliefs about the market

The endowment effect occurs when people assign a higher value to an item they own than to the same item when they do not own it, and this effect is often taken to reflect an ownership-induced change in the intrinsic value people assign to the object. However recent evidence shows that valuations made by buyers and sellers are influenced by market prices provided for the individual products, suggesting a role for beliefs about the markets. Here we elicit individuals’ beliefs about whole distributions of market prices, enabling us to quantify whether or not a given transaction constitutes a “good deal” and to demonstrate how an endowment effect may reflect such considerations. In a meta-analysis and three laboratory experiments, we show for the first time that ownership has no effect on beliefs about either: (a) the quality of the item or (b) the appropriate market price for the item. Instead, we show that sellers demand a price for the item that matches their beliefs about the item’s relative quality and the distribution of market prices in the market. Buyers, in contrast, offer less than what they believe the appropriate market price is. Thus, we argue that the endowment effect may largely reflect “adaptively rational” behavior on the part of both buyers and sellers (given their beliefs about relevant markets) rather than any ownership-induced bias or change in intrinsic preferences

Investigating cooperation with robotic peers

We explored how people establish cooperation with robotic peers, by giving participants the chance to choose whether to cooperate or not with a more/less selfish robot, as well as a more or less interactive, in a more or less critical environment. We measured the participants' tendency to cooperate with the robot as well as their perception of anthropomorphism, trust and credibility through questionnaires. We found that cooperation in Human-Robot Interaction (HRI) follows the same rule of Human-Human Interaction (HHI), participants rewarded cooperation with cooperation, and punished selfishness with selfishness. We also discovered two specific robotic profiles capable of increasing cooperation, related to the payoff. A mute and non-interactive robot is preferred with a high payoff, while participants preferred a more human-behaving robot in conditions of low payoff. Taken together, these results suggest that proper cooperation in HRI is possible but is related to the complexity of the task

Can Plan Recommendations Improve the Coverage Decisions of Vulnerable Populations in Health Insurance Marketplaces?

OBJECTIVE: The Affordable Care Act's marketplaces present an important opportunity for expanding coverage but consumers face enormous challenges in navigating through enrollment and re-enrollment. We tested the effectiveness of a behaviorally informed policy tool--plan recommendations--in improving marketplace decisions. STUDY SETTING: Data were gathered from a community sample of 656 lower-income, minority, rural residents of Virginia. STUDY DESIGN: We conducted an incentive-compatible, computer-based experiment using a hypothetical marketplace like the one consumers face in the federally-facilitated marketplaces, and examined their decision quality. Participants were randomly assigned to a control condition or three types of plan recommendations: social normative, physician, and government. For participants randomized to a plan recommendation condition, the plan that maximized expected earnings, and minimized total expected annual health care costs, was recommended. DATA COLLECTION: Primary data were gathered using an online choice experiment and questionnaire. PRINCIPAL FINDINGS: Plan recommendations resulted in a 21 percentage point increase in the probability of choosing the earnings maximizing plan, after controlling for participant characteristics. Two conditions, government or providers recommending the lowest cost plan, resulted in plan choices that lowered annual costs compared to marketplaces where no recommendations were made. CONCLUSIONS: As millions of adults grapple with choosing plans in marketplaces and whether to switch plans during open enrollment, it is time to consider marketplace redesigns and leverage insights from the behavioral sciences to facilitate consumers' decisions

Solving the border control problem: evidence of enhanced face matching in individuals with extraordinary face recognition skills.

Photographic identity documents (IDs) are commonly used despite clear evidence that unfamiliar face matching is a difficult and error-prone task. The current study set out to examine the performance of seven individuals with extraordinary face recognition memory, so called “super recognisers” (SRs), on two face matching tasks resembling border control identity checks. In Experiment 1, the SRs as a group outperformed control participants on the “Glasgow Face Matching Test”, and some case-by-case comparisons also reached significance. In Experiment 2, a perceptually difficult face matching task was used: the “Models Face Matching Test”. Once again, SRs outperformed controls both on group and mostly in case-by-case analyses. These findings suggest that SRs are considerably better at face matching than typical perceivers, and would make proficient personnel for border control agencies

What You Find Depends on How You Measure It: Reactivity of Response Scales Measuring Predecisional Information Distortion in Medical Diagnosis

“Predecisional information distortion” occurs when decision makers evaluate new information in a way that is biased towards their leading option. The phenomenon is well established, as is the method typically used to measure it, termed “stepwise evolution of preference” (SEP). An inadequacy of this method has recently come to the fore: it measures distortion as the total advantage afforded a leading option over its competitor, and therefore it cannot differentiate between distortion to strengthen a leading option (“proleader” distortion) and distortion to weaken a trailing option (“antitrailer” distortion). To address this, recent research introduced new response scales to SEP. We explore whether and how these new response scales might influence the very proleader and antitrailer processes that they were designed to capture (“reactivity”). We used the SEP method with concurrent verbal reporting: fifty family physicians verbalized their thoughts as they evaluated patient symptoms and signs (“cues”) in relation to two competing diagnostic hypotheses. Twenty-five physicians evaluated each cue using the response scale traditional to SEP (a single response scale, returning a single measure of distortion); the other twenty-five did so using the response scales introduced in recent studies (two separate response scales, returning two separate measures of distortion: proleader and antitrailer). We measured proleader and antitrailer processes in verbalizations, and compared verbalizations in the single-scale and separate-scales groups. Response scales did not appear to affect proleader processes: the two groups of physicians were equally likely to bolster their leading diagnosis verbally. Response scales did, however, appear to affect antitrailer processes: the two groups denigrated their trailing diagnosis verbally to differing degrees. Our findings suggest that the response scales used to measure information distortion might influence its constituent processes, limiting their generalizability across and beyond experimental studies

The “I” in us, or the eye on us? Regulatory focus, commitment and derogation of an attractive alternative person

When individuals are highly committed to their romantic relationship, they are more likely to engage in pro-relationship maintenance mechanisms. The present research expanded on the notion that commitment redirects self-oriented goals to consider broader relational goals and examined whether commitment interacts with a promotion and prevention focus to activate derogation of attractive alternatives. Three studies used cross-sectional and experimental approaches. Study 1 showed that romantically involved individuals predominantly focused on promotion, but not prevention, reported less initial attraction to an attractive target than single individuals, especially when highly committed to their relationship. Study 2 showed that romantically involved individuals induced in a promotion focus, compared to those in prevention focus, reported less initial attraction, but only when more committed to their relationship. Regardless of regulatory focus manipulation, more committed individuals were also less likely to perceive quality among alternative scenarios and to be attentive to alternative others in general. Finally, Study 3 showed that romantically involved individuals induced in promotion focus and primed with high commitment reported less initial attraction, than those primed with low commitment, or than those induced in prevention focus. Once again, for these latter no differences occurred according to commitment prime. Together, the findings suggest that highly committed promotion focused individuals consider broader relationship goals and activate relationship maintenance behaviors such as derogation of attractive alternatives to promote their relationship