It is known that presentation of a meaningful label (e.g., "The Teamwork Game") can influence decisions in economic games. A common view is that such labels cue associations to preexisting mental models of situations, a process here called frame selection. In the absence of such cues, participants may still spontaneously associate a game with a preexisting frame. We used the public goods game to compare the effect of such spontaneous frame selection with the effect of label framing. Participants in a condition where the public goods game was labeled "The Teamwork Game" tended to contribute at the same level as participants who spontaneously associated the unlabeled game with teamwork, whereas those who did not associate the the unlabeled game with teamwork tended to make lower contributions. We conclude that neutrally described games may be subject to spontaneous frame selection effects comparable in size to the effects of label framing.

It is often the case that one can choose a mix of alternative options rather than have to select one option only. Such an opportunity to diversify may blunt the risk involved in all-or-none choice. Here we investigate repeated investment decisions in two-valued options that differ in their riskiness, looking for the effects of recent decisions and their outcomes on upcoming decisions. We compare these effects to those evident in all-or-none choice between the same risky options. The “state of the world”, namely, the likelihood of the high versus the low outcomes of the options, is manipulated. We find that aggregate allocation diverges from uniformity (i.e., from 1/n), and is sensitive to outcome probabilities, with the pattern of results indicating reactivity to the outcome of the previous decision. Round-to-round dynamics reveal that the outcome of the previous decision has an effect on the subsequent decision, on top of inertia; the aspects of the outcome that influence the next decision indicate an effect of a missed opportunity, if there was one, in the previous decision. Importantly, recent outcomes have a similar effect in diversification decisions and in all-or-none choice.

This paper provides a novel interpretation of focal point responses (0, 50, 100 percent) in terms of ambiguous beliefs dynamics that arise in new developments of decision theory such as Choquet expected utility theory. In particular, focal point responses that have been updated from nonfocal responses can be interpreted as non-additive beliefs that account for psychological bias. A focal point response of 100 that has been updated from a nonfocal response can be represented by a non-additive belief that has been updated according to the Overestimating Update Rule. A focal point response of zero that has been updated from a nonfocal response can be represented by a non-additive belief that has been updated according to the Underestimating Update Rule. Focal point responses given consistently over time are not subject to psychological bias, and can be represented by additive probability distributions. Estimation results show such a model to be a very good fit to the data.

In optimal stopping problems, decision makers are assumed to search randomly to learn the utility of alternatives; in contrast, in one-shot multi-attribute utility optimization, decision makers are assumed to have perfect knowledge of utilities. We point out that these two contexts represent the boundaries of a continuum, of which the middle remains uncharted: How should people search intelligently when they possess imperfect information about the alternatives? We assume that decision makers first estimate the utility of each available alternative and then search the alternatives in order of their estimated utility until expected benefits are outweighed by search costs. We considered three well-known models for estimating utility: (i) a linear multi-attribute model, (ii) equal weighting of attributes, and (iii) a single-attribute heuristic. We used 12 real-world decision problems, ranging from consumer choice to industrial experimentation, to measure the performance of the three models. The full model (i) performed best on average but its simplifications (ii and iii) also had regions of superior performance. We explain the results by analyzing the impact of the models’ utility order and estimation error.

The influence of numeracy on information processing of two risk communication formats (percentage and pictograph) was examined using an eye tracker. A sample from the general population (N = 159) was used. In intuitive and deliberative decision conditions, the participants were presented with a hypothetical scenario presenting a test result. The participants indicated their feelings and their perceived risk, evoked by a 17% risk level. In the intuitive decision condition, a significant correlation (r = .30) between numeracy and the order of information processing was found: the higher the numeracy, the earlier the processing of the percentage, and the lower the numeracy, the earlier the processing of the pictograph. This intuitive, initial focus on a format prevailed over the first half of the intuitive decision-making process. In the deliberative decision condition, the correlation between numeracy and order of information processing was not significant. In both decision conditions, high and low numerates processed pictograph and percentage formats with similar depths and derived similar meanings from them in terms of feelings and perceived risk. In both conditions numeracy had no effects on the degree of attention on the percentage or the pictograph (number of fixations on formats and transitions between them). The results suggest that pictographs attract low numerates’ attention, and percentages attract high numerates’ attention in the first, intuitive, phase of numeric information processing. Pictographs thus ensure low numerates’ further elaboration on numeric risk information, which is an important precondition of risk understanding and decision making.

Past research has shown that people consistently believe that others are more easily manipulated by external influences than they themselves are—a phenomenon called the “third-person effect” (Davison, 1983). The present research investigates whether support for public policies aimed at changing behavior using incentives and other decision “nudges” is affected by this bias. Across two studies, we phrased justification for public policy initiatives using either the second- or third-person plural. In Study 1, we found that support for policies is higher when their justification points to people in general rather than the general “you”, and in Study 2 we found that this former phrasing also improves support compared to a no-justification control condition. Policy support is mediated by beliefs about the likelihood of success of the policies (as opposed to beliefs about the policies’ unintended consequences), and, in the second-person condition, is inversely related to a sense of personal agency. These effects suggest that the third-person effect holds true for nudge-type and incentive-based public policies, with implications for their popular support.

This paper explored how frames influence people’s evaluation of others’ probabilistic predictions in light of the outcomes of binary events. Most probabilistic predictions (e.g., “there is a 75% chance that Denver will win the Super Bowl”) can be partitioned into two components: A qualitative component that describes the predicted outcome (“Denver will win the Super Bowl”), and a quantitative component that represents the chance of the outcome occurring (“75% chance”). Various logically equivalent variations of a single prediction can be created through different combinations of these components and their logical or numerical complements (e.g., “25% chance that Denver will lose the Super Bowl”, “75% chance that Seattle will lose the Super Bowl”). Based on the outcome of the predicted event, these logically equivalent predictions can be categorized into two classes: Congruently framed predictions, in which the qualitative component matches the outcome, and incongruently framed predictions, in which it does not. Although the two classes of predictions are logically equivalent, we hypothesize that people would judge congruently framed predictions to be more accurate. The paper tested this hypothesis in seven experiments and found supporting evidence across a number of domains and experimental manipulations, and even when the congruently framed prediction was logically inferior. It also found that this effect held even for subjects who saw both congruently framed and incongruently framed versions of a prediction and judged the two to be logically equivalent.

Svenson (2011) showed that choices of one of two alternative productivity increases to save production resources (e.g., man-months) were biased. Judgments of resource savings following a speed increase from a low production speed line were underestimated and following an increase of a high production speed line overestimated. The objective formula for computing savings includes differences between inverse speeds and this is intuitively very problematic for most people. The purpose of the present studies was to explore ways of ameliorating or eliminating the bias. Study 1 was a control study asking participants to increase the production speed of one production line to save the same amount of production resources (man-months) as was saved by a speed increase in a reference line. The increases judged to match the reference alternatives showed the same bias as in the earlier research on choices. In Study 2 the same task and problems were used as in Study 1, but the participants were asked first to judge the resource saving of the reference alternative in a pair of alternatives before they proceeded to the matching task. This weakened the average bias only slightly. In Study 3, the participants were asked to judge the resources saved from each of two successive increases of the same single production line (other than those of the matching task) before they continued to the matching problems. In this way a participant could realize that a second production speed increase from a higher speed (e.g., from 40 to 60 items /man-month) gives less resource savings than the same speed increase from a first lower speed (e.g., from 20 to 40 items/man-month. Following this, the judgments of the same problems as in the other studies improved and the bias decreased significantly but it did not disappear. To be able to make optimal decisions about productivity increases, people need information about the bias and/or reformulations of the problems.

The letter of the law is its literal meaning. Here, the spirit of the law is its perceived intention. We tested the hypothesis that violating the spirit of the law accounts for culpability above and beyond breaking the mere letter. We find that one can incur culpability even when the letter of the law is not technically broken. We examine this effect across various legal contexts and discuss the implications for future research directions.

I report a new judgment task designed to investigate the subjective weights allotted to experience and description when integrating information from the two sources. Subjects estimated the percentage of red balls in a bag containing red and blue balls based on two samples from the bag. They experienced one sample by observing a sequence of draws and received a description of the other sample in terms of summary statistics.

The results of two experiments show that judgments were more sensitive to the experienced sample compared to the described one for most subjects, although others showed the opposite bias. The bias toward experience varied as a function of the presentation order of the two samples in Experiment 1 and the presentation format of the description in Experiment 2.

The integration of description and experience exemplifies tasks that require integration of information obtained from different sources and in different formats. Informed by the findings reported in this study, I identify some directions for future research on human information integration.

Maximizers attempt to find the best solution in decision-making, while satisficers feel comfortable with a good enough solution. Recent results pointed out some critical aspects of this decision-making approach and some concerns about its measurement and dimensional structure. In addition to the analysis of these aspects, we tested the possible mediational role of regret in this psychological process. The Maximization Inventory (MI; satisficing, decision difficulty, and alternative search), regret, and Satisfaction with Life Scale (SWLS) were translated and adapted to Spanish in order to answer these issues with a Chilean sample. Validity and reliability analysis of the MI reports that only two dimensions of the MI have enough dimensional support (decision difficulty, alternative search). The tested structural model shows good fit of partial mediation effect of regret between decision difficulty and SWLS. At the same time, alternative search has a positive relation with SWLS. These results suggest that Regret becomes crucial for prescribing behavior to decision makers.