Choosing Less‐Preferred Experiences For the Sake of Variety
Abstract. Data from several experiments show that, contrary to traditional models of variety seeking, individuals choose to switch to less-preferred option
Complexity and biases
We examine experimentally how complexity affects decision-making, when individuals choose among different products with varying benefits and costs. We find that complexity in costs leads to choosing a high-benefit product, with high costs and overall lower payoffs. In contrast, when complexity is in the benefits of the product, we cannot reject the hypothesis of random mistakes. We also examine the role of heterogeneous complexity. We find that individuals still (mistakenly) choose the high-benefit but costly product, even if cheaper and simple products are available. Our results suggest that salience is a main driver of choices under different forms of complexity.
As diversity increases, people paradoxically perceive social groups as more similar
With globalization and immigration, societal contexts differ in sheer variety of resident social groups. Social diversity challenges individuals to think in new ways about new kinds of people and where their groups all stand, relative to each other. However, psychological science does not yet specify how human minds represent social diversity, in homogeneous or heterogenous contexts. Mental maps of the array of society’s groups should differ when individuals inhabit more and less diverse ecologies. Nonetheless, predictions disagree on how they should differ. Confirmation bias suggests more diversity means more stereotype dispersion: With increased exposure, perceivers’ mental maps might differentiate more among groups, so their stereotypes would spread out (disperse). In contrast, individuation suggests more diversity means less stereotype dispersion, as perceivers experience within-group variety and between-group overlap. Worldwide, nationwide, individual, and longitudinal datasets ( n = 12,011) revealed a diversity paradox: More diversity consistently meant less stereotype dispersion. Both contextual and perceived ethnic diversity correlate with decreased stereotype dispersion. Countries and US states with higher levels of ethnic diversity (e.g., South Africa and Hawaii, versus South Korea and Vermont), online individuals who perceive more ethnic diversity, and students who moved to more ethnically diverse colleges mentally represent ethnic groups as more similar to each other, on warmth and competence stereotypes. Homogeneity shows more-differentiated stereotypes; ironically, those with the least exposure have the most-distinct stereotypes. Diversity means less-differentiated stereotypes, as in the melting pot metaphor. Diversity and reduced dispersion also correlate positively with subjective wellbeing.
Choice Bracketing
When making many choices, a person can broadly bracket them by assessing the consequences of all of them taken together, or narrowly bracket them by making each choice in isolation. We integrate research conducted in a wide range of decision contexts which shows that choice bracketing is an important determinant of behavior. Because broad bracketing allows people to take into account all the consequences of their actions, it generally leads to choices that yield higher utility. The evidence that we review, however, shows that people often fail to bracket broadly when it would be feasible for them to do so. In addition to documenting the diverse effects of bracketing, we also discuss factors that determine whether people bracket narrowly or broadly. We conclude with a discussion of normative aspects of bracketing and argue that there are some situations in which narrower bracketing results in superior decision making.
Prospect Theory, Mental Accounting, and Differences in Aggregated and Segregated Evaluation of Lottery Portfolios
If individuals have to evaluate a sequence of lotteries, their judgment is influenced by the presentation mode. Experimental studies have found significantly higher acceptance rates for a sequence of lotteries if the overall distribution was displayed instead of the set of lotteries itself. Mental accounting and loss aversion provide an easy and intuitive explanation for this phenomenon. In this paper we offer an explanation that incorporates further evaluation concepts of Prospect Theory. Our formal analysis of the difference in aggregated and segregated portfolio evaluation demonstrates that the higher attractiveness of the aggregated presentation mode is not a general phenomenon (as suggested in the literature) but depends on specific parameters of the lotteries. The theoretical findings are supported by an experimental study. In contrast to the existing evidence and in line with our theoretical results, we find for specific types of lotteries an even lower acceptance rate if the overall distribution is displayed.
Incentives as selection effects
When you apply a new incentive, you select for a new population that prefers the incentive.
Beware of samples! A cognitive-ecological sampling approach to judgment biases.
A rational analysis of the selection task as optimal data selection.
A rational analysis of the selection task as optimal data selection.
Shifting the Level of Selection in Science
Criteria for recognizing and rewarding scientists primarily focus on individual contributions. This creates a conflict between what is best for scientists’ careers and what is best for science. In this article, we show how the theory of multilevel selection provides conceptual tools for modifying incentives to better align individual and collective interests. A core principle is the need to account for indirect effects by shifting the level at which selection operates from individuals to the groups in which individuals are embedded. This principle is used in several fields to improve collective outcomes, including animal husbandry, team sports, and professional organizations. Shifting the level of selection has the potential to ameliorate several problems in contemporary science, including accounting for scientists’ diverse contributions to knowledge generation, reducing individual-level competition, and promoting specialization and team science. We discuss the difficulties associated with shifting the level of selection and outline directions for future development in this domain.
Out-group homogeneity
The out-group homogeneity effect is the perception of out-group members as more similar to one another than are in-group members, i.e. "they are alike; we are diverse".[1] Perceivers tend to have impressions about the diversity or variability of group members around those central tendencies or typical attributes of those group members. Thus, outgroup stereotypicality judgments are overestimated, supporting the view that out-group stereotypes are overgeneralizations.[2] The term "outgroup homogeneity effect", "outgroup homogeneity bias" or "relative outgroup homogeneity" have been explicitly contrasted with "outgroup homogeneity" in general,[3] the latter referring to perceived outgroup variability unrelated to perceptions of the ingroup.
The Illusion of Asymmetric Insight
The Misconception: You celebrate diversity and respect others’ points of view. The Truth: You are driven to create and form groups and then believe others are wrong just because they are oth…
Characterizing the causes, dynamics, and consequences of choice deferral
The fact that people often avoid making decisions is well known, and past research has helped to identify some of the conditions and reasons for doing so. For instance, people may forgo choices between bad options because they prefer not to end up with one of those options. It is much less clear when and why people avoid choosing in cases where they eventually will have to make a given decision. To study such instances of choice deferral, we presented participants with a series of choices, and for each choice they were allowed to either choose immediately or defer the decision until later in the experiment. Across six experiments and three choice domains (choices among consumer goods, artwork, and political candidates), we find that the strongest predictor of choice deferral is the overall value of a given set of options, with relative value (i.e., how hard it is to identify the best option) counterintuitively playing a smaller role. We show that the influence of overall value on choice deferral can be accounted for by a dynamic decision model according to which participants appraise the option set relative to a criterion before deciding whether to choose or defer, comparing this to a previous model whereby participants make such a decision based on a predetermined decision time limit. We further reveal that the influence of overall value on choice deferral is determined by how congruent options are with a given choice goal (choose-best or choose-worst) rather than simply how bad those options are. Collectively, our findings shed new light on how people decide to put off the inevitable.
Popularity Feedback Constrains Innovation in Cultural Markets
Real-world creative processes ranging from art to science rely on social feedback-loops between selection and creation. Yet, the effects of popularity feedback on collective creativity remain poorly understood. We investigate how popularity ratings influence cultural dynamics in a large-scale online experiment where participants ($N = 1\,008$) iteratively \textit{select} images from evolving markets and \textit{produce} their own modifications. Results show that exposing the popularity of images reduces cultural diversity and slows innovation, delaying aesthetic improvements. Popularity feedback is associated with changes to both selection and creative stages. During selection, popularity information triggers cumulative advantage, with participants preferentially building upon popular images, reducing diversity. During creation, participants make less disruptive changes, and are more likely to expand existing visual patterns. Feedback loops in cultural markets thus not only shape selection, but also, directly or indirectly, the form and direction of cultural innovation.
A Behavioral Model of Rational Choice
Abstract. Introduction, 99. — I. Some general features of rational choice, 100.— II. The essential simplifications, 103. — III. Existence and uniqueness of
