Individual and dyadic continuous risk-based decision making: Changes and differences

2019 ◽  
Vol 47 (10) ◽  
pp. 1-10 ◽  
Author(s):  
Yujia Sui ◽  
Hongying Tan ◽  
Di Li
Keyword(s):  
Decision Making ◽  
Risk Taking ◽  
Risk Preference ◽  
Balloon Analogue Risk Task ◽  
Degree Of Risk ◽  
Successive Loss ◽  
Risk Decision

We used the Balloon Analogue Risk Task to study the changes and differences in risk preference between individuals and dyads in successive loss and gain contexts. Regardless of who was making the decision, the degree of risk taking after the first gain was significantly higher than that after the first loss, whereas the degree of risk taking after successive gains was significantly lower than that after successive losses. Further, risk preference increased after successive losses, and the increase was smaller for a dyad than for an individual, meaning the dyad’s decision making was more rational. Participants’ risk preference decreased after successive gains, and the extent of the decrease was larger for a dyad than that for an individual, meaning that individuals’ decision making was more rational. These findings indicate that the rational performance of both individuals and dyads in continuous risk decision making varies according to their gains or losses.

scholarly journals Cuing both positive and negative episodic foresight reduces delay discounting but does not affect risk-taking

2019 ◽  
Vol 72 (8) ◽  
pp. 1998-2017 ◽  
Author(s):  
Adam Bulley ◽  
Beyon Miloyan ◽  
Gillian V Pepper ◽  
Matthew J Gullo ◽  
Julie D Henry ◽  
...  
Keyword(s):  
Decision Making ◽  
Delay Discounting ◽  
Risk Taking ◽  
Future Scenarios ◽  
Balloon Analogue Risk Task ◽  
Episodic Simulation ◽  
The Future ◽  
Future Events ◽  
Monetary Choice Questionnaire

Humans frequently create mental models of the future, allowing outcomes to be inferred in advance of their occurrence. Recent evidence suggests that imagining positive future events reduces delay discounting (the devaluation of reward with time until its receipt), while imagining negative future events may increase it. Here, using a sample of 297 participants, we experimentally assess the effects of cued episodic simulation of positive and negative future scenarios on decision-making in the context of both delay discounting (monetary choice questionnaire) and risk-taking (balloon-analogue risk task). Participants discounted the future less when cued to imagine positive and negative future scenarios than they did when cued to engage in control neutral imagery. There were no effects of experimental condition on risk-taking. Thus, although these results replicate previous findings suggesting episodic future simulation can reduce delay discounting, they indicate that this effect is not dependent on the valence of the thoughts, and does not generalise to all other forms of “impulsive” decision-making. We discuss various interpretations of these results, and suggest avenues for further research on the role of prospection in decision-making.

Regret-Based Decision-Making Style Acts as a Dispositional Factor in Risky Choices

2018 ◽  
Vol 122 (4) ◽  
pp. 1412-1431 ◽  
Author(s):  
Marco Lauriola ◽  
Angelo Panno ◽  
Joshua A. Weller
Keyword(s):  
Decision Making ◽  
Individual Differences ◽  
Risk Behaviors ◽  
Risk Taking ◽  
Anxiety And Depression ◽  
Risk Averse ◽  
Factorial Structure ◽  
Balloon Analogue Risk Task ◽  
Risk Taking Behaviors ◽  
Over Time

People who anticipate the potential regret of one’s decisions are believed to act in a more risk-averse manner and, thus, display fewer risk-taking behaviors across many domains. We conducted two studies to investigate whether individual differences in regret-based decision-making (a) reflect a unitary cognitive-style dimension, (b) are stable over time, and (c) predict later risk-taking behavior. In Study 1, 332 participants completed a regret-based decision-making style scale (RDS) to evaluate its psychometric qualities. In Study 2, participants ( N = 119) were tested on two separate occasions to assess the association between RDS and risk-taking. At Time 1, participants completed the RDS, as well as trait measures of anxiety and depression. One month later, they completed the Balloon Analogue Risk Task (BART) and state mood (Positive/Negative affect) scales. The RDS had a sound unidimensional factorial structure and was stable over time. Further, higher reported RDS scores were significantly associated with less risk-taking on the BART, holding other variables constant. These studies suggest that individual differences in regret-based decision-making may lead to a more cautious approach to real-world risk behaviors.

scholarly journals On the Relationship between Cognitive Ability and Risk Preference

2018 ◽  
Vol 32 (2) ◽  
pp. 115-134 ◽  
Author(s):  
Thomas Dohmen ◽  
Armin Falk ◽  
David Huffman ◽  
Uwe Sunde
Keyword(s):  
Decision Making ◽  
Cognitive Ability ◽  
Risk Taking ◽  
Risk Preference ◽  
Future Research ◽  
Life Domains ◽  
Risk And Uncertainty ◽  
Decision Making Under Risk ◽  
Controlled Environments ◽  
The Relationship

This paper will focus on the relationship between cognitive ability and decision-making under risk and uncertainty. Taken as a whole, this research indicates that cognitive ability is associated with risk-taking behavior in various contexts and life domains, including incentivized choices between lotteries in controlled environments, behavior in nonexperimental settings, and self-reported tendency to take risks. One pattern that emerges frequently in these studies is that cognitive ability tends to be positively correlated with avoidance of harmful risky situations, but it tends to be negatively correlated with risk aversion in advantageous situations. We conclude by discussing perspectives for future research, in particular the scope for the development of richer sets of elicitation instruments and measurement across a wider range of concepts.

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