scholarly journals Decomposing loss aversion from gaze allocation and pupil dilation

2020 ◽  
Vol 117 (21) ◽  
pp. 11356-11363 ◽  
Author(s):  
Feng Sheng ◽  
Arjun Ramakrishnan ◽  
Darsol Seok ◽  
Wenjia Joyce Zhao ◽  
Samuel Thelaus ◽  
...  
Keyword(s):  
Response Bias ◽  
Cognitive Processes ◽  
Loss Aversion ◽  
Process Model ◽  
Pupil Dilation ◽  
Decision Makers ◽  
Alternative View ◽  
Integrative Framework ◽  
Biological Heterogeneity ◽  
Underlying Mechanisms

Loss-averse decisions, in which one avoids losses at the expense of gains, are highly prevalent. However, the underlying mechanisms remain controversial. The prevailing account highlights a valuation bias that overweighs losses relative to gains, but an alternative view stresses a response bias to avoid choices involving potential losses. Here we couple a computational process model with eye-tracking and pupillometry to develop a physiologically grounded framework for the decision process leading to accepting or rejecting gambles with equal odds of winning and losing money. Overall, loss-averse decisions were accompanied by preferential gaze toward losses and increased pupil dilation for accepting gambles. Using our model, we found gaze allocation selectively indexed valuation bias, and pupil dilation selectively indexed response bias. Finally, we demonstrate that our computational model and physiological biomarkers can identify distinct types of loss-averse decision makers who would otherwise be indistinguishable using conventional approaches. Our study provides an integrative framework for the cognitive processes that drive loss-averse decisions and highlights the biological heterogeneity of loss aversion across individuals.

scholarly journals Decomposing Loss Aversion from Gaze Allocation and Pupil Dilation

2020 ◽  
Author(s):  
Feng Sheng ◽  
Arjun Ramakrishnan ◽  
Darsol Seok ◽  
Wenjia Joyce Zhao ◽  
Samuel Thelaus ◽  
...  
Keyword(s):  
Response Bias ◽  
Loss Aversion ◽  
Decision Process ◽  
Process Model ◽  
Pupil Dilation ◽  
Decision Makers ◽  
Integrative Approach ◽  
Alternative View ◽  
Integrative Framework ◽  
Biological Heterogeneity

AbstractLoss-averse decisions, in which one avoids losses at the expense of gains, are highly prevalent. However, the underlying mechanisms remain controversial. The prevailing account highlights a valuation bias that overweighs losses relative to gains, but an alternative view stresses a response bias to avoid choices involving potential losses. Here we couple a computational process model with eye-tracking and pupillometry to develop a physiologicallygrounded framework for the decision process leading to accepting or rejecting gambles with equal odds of winning and losing money. Overall, loss-averse decisions were accompanied by preferential gaze towards losses and increased pupil dilation for accepting gambles. Using our model, we found gaze allocation selectively indexed valuation bias, and pupil dilation selectively indexed response bias. Finally, we demonstrated that our computational model and physiological biomarkers can identify distinct types of loss-averse decision-makers who would otherwise be indistinguishable using conventional approaches. Our study provides an integrative framework for the cognitive processes that drive loss-averse decisions and highlights the biological heterogeneity of loss aversion across individuals.Significance StatementWe revisit the concept of loss aversion by synthesizing distinct views into an integrative framework and by probing physiological biomarkers associated with the behavior. The framework decomposes loss aversion into a valuation bias, which weighs losses over gains, and a response bias, which avoids loss-related choices altogether. Further, we revealed a double dissociation in physiology underlying the decision process. Valuation bias was associated with preferential gaze allocation to losses whereas response bias was associated with pupillary dilation. Our framework exposed biological heterogeneity underlying loss aversion and distinguishes different loss-averse decision makers who are otherwise indistinguishable using conventional approaches. Our integrative approach provides a deeper analysis of the mechanisms underlying loss aversion and incorporates distinct views within a unified biological framework.

Embodying algorithms, enactive artificial intelligence and the extended cognition: You can see as much as you know about algorithm

2021 ◽  
pp. 016555152098549
Author(s):  
Donghee Shin
Keyword(s):  
Artificial Intelligence ◽  
Embodied Cognition ◽  
Cognitive Processes ◽  
Process Model ◽  
Extended Cognition ◽  
Dual Process ◽  
Personalized Recommendation ◽  
Normative Values ◽  
And Performance ◽  
Concise Guide

The recent proliferation of artificial intelligence (AI) gives rise to questions on how users interact with AI services and how algorithms embody the values of users. Despite the surging popularity of AI, how users evaluate algorithms, how people perceive algorithmic decisions, and how they relate to algorithmic functions remain largely unexplored. Invoking the idea of embodied cognition, we characterize core constructs of algorithms that drive the value of embodiment and conceptualizes these factors in reference to trust by examining how they influence the user experience of personalized recommendation algorithms. The findings elucidate the embodied cognitive processes involved in reasoning algorithmic characteristics – fairness, accountability, transparency, and explainability – with regard to their fundamental linkages with trust and ensuing behaviors. Users use a dual-process model, whereby a sense of trust built on a combination of normative values and performance-related qualities of algorithms. Embodied algorithmic characteristics are significantly linked to trust and performance expectancy. Heuristic and systematic processes through embodied cognition provide a concise guide to its conceptualization of AI experiences and interaction. The identified user cognitive processes provide information on a user’s cognitive functioning and patterns of behavior as well as a basis for subsequent metacognitive processes.

scholarly journals Development of training method for vessel traffic service based on cognitive process

2021 ◽  
Author(s):  
Binbing Song ◽  
Hiroko Itoh ◽  
Yasumi Kawamura
Keyword(s):  
Cognitive Processes ◽  
Cognitive Process ◽  
Process Model ◽  
Situational Awareness ◽  
International Association ◽  
Tokyo Bay ◽  
Training Methods ◽  
Training Method ◽  
Oral Transmission ◽  
Maritime Traffic

AbstractVessel traffic service (VTS) is important to protect the safety of maritime traffic. Along with the expansion of monitoring area per VTS operator in Tokyo Bay, Japan, inexperienced operators must acquire the ability to quickly and accurately detect conditions that requires attention (CRAs) from a monitoring screen. In our previous study (Song B, Itoh H, Kawamura Y, Fukuto J (2018) Analysis of Cognitive Processes of Operators of Vessel Traffic Service. In: Proceedings of the 2018 International Association of Institutes of Navigation. IAIN 2018, pp 529–534, Song et al., J Jpn Inst Navig 140:48–54, 2019), we established a task analysis method based on the assumption that the cognitive process model consists of three stages: “situational awareness”, “situation judgment”, and “decision making”. A simulation experiment was conducted for VTS operators with different levels of ability and their cognitive processes were compared based on the observation of eye movements. The results showed that the inexperienced operators’ abilities to predict situation changes were lower. And it was considered that oral transmission of the knowledge is difficult, thus new training methods are needed to help the inexperienced operators to understand the prediction methods of experienced operators. In this study, based on the cognitive process of an experienced operator, we analyzed the prediction procedures of situation changes and developed an educational tool called vessel traffic routine (VTR). The training method learning VTR aims to quickly improve inexperienced VTS operators’ abilities to predict situation changes. A simulation verification experiment of the VTR effect was conducted for four inexperienced operators, who were divided into two groups with and without prior explanation of VTR. By evaluating the cognitive processes of inexperienced operators, it was confirmed that those given prior explanations of VTR were better at detecting CRAs.

How Do Observers Assess Resolve?

2019 ◽  
pp. 1-23 ◽  
Author(s):  
Joshua D Kertzer ◽  
Jonathan Renshon ◽  
Keren Yarhi-Milo
Keyword(s):  
Decision Makers ◽  
Credibility Theory ◽  
Theoretical Frameworks ◽  
Integrative Framework ◽  
Research Designs ◽  
The Us ◽  
Alternative Research ◽  
Conjoint Experiment ◽  
Costly Signals ◽  
Ordinary Citizens

ABSTRACTDespite a plethora of theoretical frameworks, IR scholars have struggled with the question of how observers assess resolve. We make two important contributions in this direction. Conceptually, we develop an integrative framework that unites otherwise disconnected theories, viewing them as a set of heuristics actors use to simplify information-rich environments. Methodologically, we employ a conjoint experiment that provides empirical traction impossible to obtain using alternative research designs. We find that ordinary citizens are ‘intuitive deterrence theorists’ who focus to a great extent on capabilities, stakes, signals and past actions in judging resolve. We also find that observers see democracies as less resolved than autocracies (not more), casting doubt on key propositions of democratic credibility theory. Finally, a conceptual replication shows that a group of elite decision makers converge with the US public in how they interpret costly signals, and in viewing democracies as less resolved than autocracies.

scholarly journals Sailing Speed Optimization Model for Slow Steaming Considering Loss Aversion Mechanism

2020 ◽  
Vol 2020 ◽  
pp. 1-11
Author(s):  
Yuzhe Zhao ◽  
Jingmiao Zhou ◽  
Yujun Fan ◽  
Haibo Kuang
Keyword(s):  
Loss Aversion ◽  
Optimization Model ◽  
Value Function ◽  
Fitness Function ◽  
Decision Makers ◽  
Value Functions ◽  
Delivery Delay ◽  
Slow Steaming ◽  
Proposed Model ◽  
Speed Optimization

This paper analyses loss aversion mechanism (LAM) of the shipping company’s decision-makers about the risk-based decision (RBD) for slow steaming and generalizes a novel optimization model for the sailing speed through the trade-off between fuel consumption, SOx emissions and delivery delay. The value functions against the benchmark speed were constructed based on physiological expected utility (PEU) to reveal the features of loss aversion, and the objective function was derived from these value functions with the aim to optimize the sailing speed. After that, a Genetic Algorithm (GA) solution with fitness function and special operators was built to solve the proposed model. Finally, the model was applied to pinpoint the PEU for the optimal sailing speed against the benchmark speed, and the sensitivity of the model was discussed with different benchmark speeds, value function weights and input parameters. The analysis shows that the proposed model can assist the slow steaming RBD based on the inner feelings of the shipping company’s decision-makers, offering a novel tool for sailing speed optimization.

scholarly journals Towards a universal competitive intelligence process model

2013 ◽  
Vol 15 (2) ◽  
Author(s):  
Rene Pellissier ◽  
Tshilidzi E. Nenzhelele
Keyword(s):  
Content Analysis ◽  
Current Literature ◽  
Search Engines ◽  
Process Model ◽  
Relevant Literature ◽  
Decision Makers ◽  
Process Models ◽  
Competitive Intelligence ◽  
Competitive Edge ◽  
Do So

Background: Competitive intelligence (CI) provides actionable intelligence, which provides a competitive edge in enterprises. However, without proper process, it is difficult to develop actionable intelligence. There are disagreements about how the CI process should be structured. For CI professionals to focus on producing actionable intelligence, and to do so with simplicity, they need a common CI process model.Objectives: The purpose of this research is to review the current literature on CI, to look at the aims of identifying and analysing CI process models, and finally to propose a universal CI process model.Method: The study was qualitative in nature and content analysis was conducted on all identified sources establishing and analysing CI process models. To identify relevant literature, academic databases and search engines were used. Moreover, a review of references in related studies led to more relevant sources, the references of which were further reviewed and analysed. To ensure reliability, only peer-reviewed articles were used.Results: The findings reveal that the majority of scholars view the CI process as a cycle of interrelated phases. The output of one phase is the input of the next phase.Conclusion: The CI process is a cycle of interrelated phases. The output of one phase is the input of the next phase. These phases are influenced by the following factors: decision makers, process and structure, organisational awareness and culture, and feedback.

scholarly journals Joint Inventory, Pricing, and Advertising Decisions with Surplus and Stockout Loss Aversions

2016 ◽  
Vol 2016 ◽  
pp. 1-14 ◽  
Author(s):  
Bing-Bing Cao ◽  
Zhi-Ping Fan ◽  
Hongyan Li ◽  
Tian-Hui You
Keyword(s):  
Loss Aversion ◽  
Optimal Policy ◽  
Optimal Solution ◽  
Research Area ◽  
Decision Makers ◽  
Order Quantity ◽  
Effort Level ◽  
Optimal Decisions ◽  
Advertising Effort ◽  
Fruitful Research

The newsvendor models considering decision-makers’ behavioral factors remain a fruitful research area in operation management field in past decade. In this paper, we further extend the current literatures to look into joint inventory, pricing, and advertising decisions considering loss aversion effects under the newsvendor setting. The purpose is to explore how the loss aversions affect the optimal policy of order quantity, price, and advertising effort level. We present an integrated utility model to measure both economic payoff and loss aversion utility of the newsvendor, where surplus loss aversion and stockout loss aversion are first separately defined and quantified. Then, we analyze the optimal solution conditions of the integrated model under exogenous and endogenous price cases, respectively. Under exogenous price case, we find that the uniquely optimal policy exists and is presented in the closed form. Under endogenous price case, the optimal policy is determined under mild conditions; we also provide the solutions when order quantity factor or advertising effort level is fixed in this case. In addition, the sensitivity analysis shows that the loss aversions affect the optimal decisions of order quantity, price, and advertising effort level in a systematic way.

scholarly journals How to Optimize Learning From Animated Models: A Review of Guidelines Based on Cognitive Load

2008 ◽  
Vol 78 (3) ◽  
pp. 645-675 ◽  
Author(s):  
Pieter Wouters ◽  
Fred Paas ◽  
Jeroen J. G. van Merriënboer
Keyword(s):  
Cognitive Load ◽  
Cognitive Processes ◽  
Subject Matter ◽  
Instructional Method ◽  
Design Guidelines ◽  
Cognitive Capacity ◽  
Pedagogical Agent ◽  
Integrative Framework

Animated models explicate the procedure to solve a problem, as well as the rationale behind this procedure. For abstract cognitive processes, animations might be beneficial, especially when a supportive pedagogical agent provides explanations. This article argues that animated models can be an effective instructional method, provided that they are designed in such a way that cognitive capacity is optimally employed. This review proposes three sets of design guidelines based on cognitive load research: The first aims at managing the complexity of subject matter. The second focuses on preventing activities (attributed to poor design) that obstruct learning. The last incites learners to engage in the active and relevant processing of subject matter. Finally, an integrative framework is presented for designing effective animated models.

scholarly journals Research on Site Selection and Capacity Determination of Mobile Energy Storage in Extreme Scenarios Considering the Behaviour of Decision

2021 ◽  
Vol 293 ◽  
pp. 01035
Author(s):  
Shiyu Deng ◽  
Chang Liu ◽  
Wenxia Liu ◽  
Zongqi Liu
Keyword(s):  
Energy Storage ◽  
Loss Aversion ◽  
Power Supply ◽  
Site Selection ◽  
Capacity Planning ◽  
Decision Makers ◽  
Storage Site ◽  
Attribute Weight ◽  
Relative Closeness

In order to ensure that the power supply can be restored quickly and efficiently under extreme conditions, an evaluation and decision-making method for mobile energy storage site selection and capacity planning considering the behaviour of decision makers is proposed. The prospect value is calculated based on the prospect theory to describe the bounded rationality and loss aversion of decision makers, and the attribute weight is calculated based on the relative closeness, and then the comprehensive value is obtained. Based on this, we can choose a mobile energy storage installation plan that is more in line with the psychology of decision makers.

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