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Ignorance or integration: the cognitive processes underlying choice behavior
Authors:Shahar Ayal  Guy Hochman
Affiliation:1. Center for Behavioral Economics, Fuqua School of Business, Duke University, USA;2. Both authors contributed equally to the article.;3. Max Wertheimer Minerva Center for Cognitive Studies, Faculty of Industrial Engineering and Management, The Technion—Israel Institute of Technology, Haifa, Israel
Abstract:The fast‐and‐frugal heuristic framework assumes noncompensatory tools for human preferences (i.e., priority heuristic) and inferences (i.e., take the best heuristic). According to this framework, these heuristics predict choice behavior as well as model the cognitive processes underlying such behavior. The current paper presents two studies that juxtapose predictions derived from these two simple heuristics with alternative predictions derived from compensatory principles. Dependent measures that included reaction time, choice pattern, confidence level, and accuracy were better predicted by compensatory indices than by noncompensatory indices. These findings suggest that people do not rely on limited arguments only, but tend to integrate all acquired information into their choice processes. This tendency was replicated even when the experimental task facilitated the use of noncompensatory principles. We argue that the fast and frugal heuristics can predict the final outcome only under certain conditions, but even in these particular situations they are not applicable to the processes underlying choice behavior. An integrative model for choice behavior is proposed that better represents the data. Copyright © 2009 John Wiley & Sons, Ltd.
Keywords:compensatory models  noncompensatory models  take the best heuristic  priority heuristic  choice behavior
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