Abstract. Data from several experiments show that, contrary to traditional models of variety seeking, individuals choose to switch to less-preferred option
Diversification bias: Explaining the discrepancy in variety seeking between combined and separated choices.
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.
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
Young children would rather explore than get rewards
Young children will pass up rewards they know they can collect to explore other options, a new study suggests. Researchers found that when adults and 4- to 5-year-old children played a game where certain choices earned them rewards, both adults and children quickly learned what choices would give them the biggest returns. But while adults ...
Anticipation and Choice Heuristics in the Dynamic Consumption of Pain Relief
Humans frequently need to allocate resources across multiple time-steps. Economic theory proposes that subjects do so according to a stable set of intertemporal preferences, but the computational demands of such decisions encourage the use of formally less competent heuristics. Few empirical studies have examined dynamic resource allocation decisions systematically. Here we conducted an experiment involving the dynamic consumption over approximately 15 minutes of a limited budget of relief from moderately painful stimuli. We had previously elicited the participants’ time preferences for the same painful stimuli in one-off choices, allowing us to assess self-consistency. Participants exhibited three characteristic behaviors: saving relief until the end, spreading relief across time, and early spending, of which the last was markedly less prominent. The likelihood that behavior was heuristic rather than normative is suggested by the weak correspondence between one-off and dynamic choices. We show that the consumption choices are consistent with a combination of simple heuristics involving early-spending, spreading or saving of relief until the end, with subjects predominantly exhibiting the last two.
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.
The Challenge of Understanding What Users Want: Inconsistent Preferences and Engagement Optimization
Online platforms have a wealth of data, run countless experiments, and use industrial-scale algorithms to optimize user experience. Despite this, many users seem to regret the time they spend on these platforms. One possible explanation is that incentives are misaligned: platforms are not optimizing for user happiness. We suggest the problem runs deeper, transcending the specific incentives of any particular platform, and instead stems from a mistaken foundational assumption. To understand what users want, platforms look at what users do. This is a kind of revealed-preference assumption that is ubiquitous in the way user models are built. Yet research has demonstrated, and personal experience affirms, that we often make choices in the moment that are inconsistent with what we actually want. The behavioral economics and psychology literatures suggest, for example, that we can choose mindlessly or that we can be too myopic in our choices, behaviors that feel entirely familiar on online platforms. In this work, we develop a model of media consumption where users have inconsistent preferences. We consider a platform which wants to maximize user utility, but only observes behavioral data in the form of the user’s engagement. We show how our model of users’ preference inconsistencies produces phenomena that are familiar from everyday experience but difficult to capture in traditional user interaction models. These phenomena include users who have long sessions on a platform but derive very little utility from it, and platform changes that steadily raise user engagement before abruptly causing users to go “cold turkey” and quit. A key ingredient in our model is a formulation for how platforms determine what to show users: they optimize over a large set of potential content (the content manifold) parametrized by underlying features of the content. Whether improving engagement improves user welfare depends on the direction of movement in the content manifold: For certain directions of change, increasing engagement makes users less happy, whereas in other directions on the same manifold, increasing engagement makes users happier. We provide a characterization of the structure of content manifolds for which increasing engagement fails to increase user utility. By linking these effects to abstractions of platform design choices, our model thus creates a theoretical framework and vocabulary in which to explore interactions between design, behavioral science, and social media. This paper was accepted by Yan Chen, behavioral economics and decision analysis. Funding: This work was supported by the Vannevar Bush Faculty Fellowship and Multidisciplinary University Research Initiative [Grant W911NF-19-0217]. Supplemental Material: The online appendices are available at https://doi.org/10.1287/mnsc.2022.03683 .
Attraction - LGBTQIA+ Wiki
Attraction describes a feeling of interest or desire towards a particular individual. Feelings of interest or desire which are not directed at a particular individual...
Incentives as selection effects
When you apply a new incentive, you select for a new population that prefers the incentive.
Time-inconsistent Preferences and Consumer Self-Control
Abstract Why do consumers sometimes act against their own better judgment, engaging in behavior that is often regretted after the fact and that would have been rejected with adequate forethought? More generally, how do consumers attempt to maintain self-control in the face of time-inconsistent preferences? This article addresses consumer impatience by developing a decision-theoretic model based on reference points. The model explains how and why consumers experience sudden increases in desire for a product, increases that can result in the temporary overriding of long-term preferences. Tactics that consumers use to control their own behavior are also discussed. Consumer self-control is framed as a struggle between two psychological forces, desire and willpower. Finally, two general classes of self-control strategies are described: those that directly reduce desire, and those that overcome desire through will power.
Metacognitive experiences as information: Processing fluency in consumer judgment and decision making
Abstract Thinking is accompanied by metacognitive experiences of ease or difficulty. People draw on these experiences as a source of information that can complement or challenge the implications of declarative information. We conceptualize the operation of metacognitive experiences within the framework of feelings‐as‐information theory and review their implications for judgments relevant to consumer behavior, including popularity, trust, risk, truth, and beauty.
Metacognitive experiences as information: Processing fluency in consumer judgment and decision making
Abstract Thinking is accompanied by metacognitive experiences of ease or difficulty. People draw on these experiences as a source of information that can complement or challenge the implications of declarative information. We conceptualize the operation of metacognitive experiences within the framework of feelings‐as‐information theory and review their implications for judgments relevant to consumer behavior, including popularity, trust, risk, truth, and beauty.
A rational analysis of the selection task as optimal data selection.
A rational analysis of the selection task as optimal data selection.
Generalizability of choice architecture interventions
Although a given choice architecture intervention (a ‘nudge’) can be highly effective in some conditions, it can be ineffective or counterproductive in others. Critically, researchers and practitioners cannot reliably predict which of these outcomes will happen on the basis of current knowledge. In this Review, we present evidence that the average effectiveness of choice architecture interventions on behaviour is smaller than often reported and that there is substantial heterogeneity in their effects. We outline the obstacles to understanding the generalizability of these effects, such as the complex interaction of moderators and their changes over time. We then clarify dimensions of generalizability and research practices (including systematic exploration of the moderators and practices designed to enhance generalizability) that could enable evidence on generalizability to be gathered more efficiently. These practices are essential for advancing nuanced theories of behaviour change and for more accurately predicting the effectiveness of choice architecture interventions across diverse populations, settings, treatments, outputs and analytical approaches.
