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.

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.

A literature review on firms' internationalisation through e-commerce

2019 ◽  
pp. 121-143
Author(s):  
Riccardo Resciniti ◽  
Federica De Vanna
Keyword(s):  
Systematic Review ◽  
Literature Review ◽  
International Business ◽  
Decision Process ◽  
Foreign Markets ◽  
New Markets ◽  
Integrative Framework ◽  
The Past ◽  
The Relationship

The rise of e-commerce has brought considerable changes to the relationship between firms and consumers, especially within international business. Hence, understanding the use of such means for entering foreign markets has become critical for companies. However, the research on this issue is new and so it is important to evaluate what has been studied in the past. In this study, we conduct a systematic review of e-commerce and internationalisation studies to explicate how firms use e-commerce to enter new markets and to export. The studies are classified by theories and methods used in the literature. Moreover, we draw upon the internationalisation decision process (antecedents-modalities-consequences) to propose an integrative framework for understanding the role of e-commerce in internationalisation

The Effects of Decision Time on Perceptions of Decisions and Decision Makers in (Moral) Trade-Off Scenarios

2019 ◽  
Author(s):  
Anna Katharina Spälti ◽  
Mark John Brandt ◽  
Marcel Zeelenberg
Keyword(s):  
Decision Process ◽  
Decision Time ◽  
Decision Makers ◽  
Process Information ◽  
Total N ◽  
Trade Off ◽  
Financial Gain ◽  
Trade Offs ◽  
Sacred Values ◽  
Moral Context

People often have to make trade-offs. We study three types of trade-offs: 1) "secular trade-offs" where no moral or sacred values are at stake, 2) "taboo trade-offs" where sacred values are pitted against financial gain, and 3) "tragic trade-offs" where sacred values are pitted against other sacred values. Previous research (Critcher et al., 2011; Tetlock et al., 2000) demonstrated that tragic and taboo trade-offs are not only evaluated by their outcomes, but are also evaluated based on the time it took to make the choice. We investigate two outstanding questions: 1) whether the effect of decision time differs for evaluations of decisions compared to decision makers and 2) whether moral contexts are unique in their ability to influence character evaluations through decision process information. In two experiments (total N = 1434) we find that decision time affects character evaluations, but not evaluations of the decision itself. There were no significant differences between tragic trade-offs and secular trade-offs, suggesting that the decisions structure may be more important in evaluations than moral context. Additionally, the magnitude of the effect of decision time shows us that decision time, may be of less practical use than expected. We thus urge, to take a closer examination of the processes underlying decision time and its perception.

scholarly journals Probability elicitation using geostatistics in hydrocarbon exploration

2021 ◽  
Author(s):  
André Luís Morosov ◽  
Reidar Brumer Bratvold
Keyword(s):  
Value Creation ◽  
Decision Process ◽  
Conceptual Models ◽  
Joint Probability ◽  
Decision Makers ◽  
Hydrocarbon Exploration ◽  
Joint Probability Distribution ◽  
Proof Of Concept ◽  
Geological Information ◽  
Decision Supporting

AbstractThe exploratory phase of a hydrocarbon field is a period when decision-supporting information is scarce while the drilling stakes are high. Each new prospect drilled brings more knowledge about the area and might reveal reserves, hence choosing such prospect is essential for value creation. Drilling decisions must be made under uncertainty as the available geological information is limited and probability elicitation from geoscience experts is key in this process. This work proposes a novel use of geostatistics to help experts elicit geological probabilities more objectively, especially useful during the exploratory phase. The approach is simpler, more consistent with geologic knowledge, more comfortable for geoscientists to use and, more comprehensive for decision-makers to follow when compared to traditional methods. It is also flexible by working with any amount and type of information available. The workflow takes as input conceptual models describing the geology and uses geostatistics to generate spatial variability of geological properties in the vicinity of potential drilling prospects. The output is stochastic realizations which are processed into a joint probability distribution (JPD) containing all conditional probabilities of the process. Input models are interactively changed until the JPD satisfactory represents the expert’s beliefs. A 2D, yet realistic, implementation of the workflow is used as a proof of concept, demonstrating that even simple modeling might suffice for decision-making support. Derivative versions of the JPD are created and their effect on the decision process of selecting the drilling sequence is assessed. The findings from the method application suggest ways to define the input parameters by observing how they affect the JPD and the decision process.

scholarly journals Development of a Shipment Policy for Collection Centers

Mathematics ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 1385
Author(s):  
Irais Mora-Ochomogo ◽  
Marco Serrato ◽  
Jaime Mora-Vargas ◽  
Raha Akhavan-Tabatabaei
Keyword(s):  
Climate Change ◽  
Natural Disasters ◽  
Markov Decision Process ◽  
Decision Process ◽  
Necessary Conditions ◽  
Decision Makers ◽  
Humanitarian Organizations ◽  
The World ◽  
Markov Decision ◽  
Unsatisfied Demand

Natural disasters represent a latent threat for every country in the world. Due to climate change and other factors, statistics show that they continue to be on the rise. This situation presents a challenge for the communities and the humanitarian organizations to be better prepared and react faster to natural disasters. In some countries, in-kind donations represent a high percentage of the supply for the operations, which presents additional challenges. This research proposes a Markov Decision Process (MDP) model to resemble operations in collection centers, where in-kind donations are received, sorted, packed, and sent to the affected areas. The decision addressed is when to send a shipment considering the uncertainty of the donations’ supply and the demand, as well as the logistics costs and the penalty of unsatisfied demand. As a result of the MDP a Monotone Optimal Non-Decreasing Policy (MONDP) is proposed, which provides valuable insights for decision-makers within this field. Moreover, the necessary conditions to prove the existence of such MONDP are presented.

An Exploration of Five Stages in Faculty Retirement Decision Making

2020 ◽  
pp. 193672442098298
Author(s):  
Beverlee B. Anderson ◽  
Jennifer Jeffries ◽  
Janet McDaniel
Keyword(s):  
Decision Making ◽  
Qualitative Research ◽  
Decision Process ◽  
Process Model ◽  
Working Life ◽  
Substantial Portion ◽  
Retirement Decision ◽  
Faculty Retirement ◽  
Cognitive Decision

Humans make thousands of decisions each day. Most of the decisions we make are trivial or relatively unimportant in possible consequences. However, there are a few decisions we make in life that are lifechanging; one of those is the decision to retire from the professoriate. Voluntarily deciding to leave a profession where one has spent a substantial portion of one’s working life is one of life’s major decisions. This qualitative research looks at the various influences, actions, and feelings through the process of deciding to retire. Using a five-stage cognitive decision-process model as a framework, this paper reports on the reflections of 20 recent retirees over the five stages of the decision process from when first seriously considering the decision to postretirement activities and feelings. The results show that while all faculty progressed through the five stages, the timeframe, influences, feelings, and actions were unique to each individual.

scholarly journals Fusion Cubes

2013 ◽  
Vol 9 (2) ◽  
pp. 66-88 ◽  
Author(s):  
Alberto Abelló ◽  
Jérôme Darmont ◽  
Lorena Etcheverry ◽  
Matteo Golfarelli ◽  
Jose-Norberto Mazón ◽  
...  
Keyword(s):  
Business Intelligence ◽  
Decision Process ◽  
Decision Makers ◽  
Related Research ◽  
Service Business ◽  
Short Lifespan ◽  
Research Challenges ◽  
Self Service ◽  
Core Idea ◽  
And Storage

Self-service business intelligence is about enabling non-expert users to make well-informed decisions by enriching the decision process with situational data, i.e., data that have a narrow focus on a specific business problem and, typically, a short lifespan for a small group of users. Often, these data are not owned and controlled by the decision maker; their search, extraction, integration, and storage for reuse or sharing should be accomplished by decision makers without any intervention by designers or programmers. The goal of this paper is to present the framework we envision to support self-service business intelligence and the related research challenges; the underlying core idea is the notion of fusion cubes, i.e., multidimensional cubes that can be dynamically extended both in their schema and their instances, and in which situational data and metadata are associated with quality and provenance annotations.

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