Regret and disappointment in taxpayer reporting decisions: An experimental study

This paper reports on experiments which test whether factors such as regret or disappointment influence taxpayer compliance decisions. Previous tests of regret and disappointment theory have been based upon the common-ratio effect in which probabilities vary while outcomes are held fixed. In contrast, our experiments involved trials in which the outcomes were allowed to vary. Previous tests had mainly found evidence of regret effects and to a lesser extent were supportive of disappointment. In contrast, we were able to reject simple theories of both regret and disappointment. A second experiment produced evidence which indicates that whether or not rejected risky alternatives are resolved has no significant influence on subjects' choices. One would expect that regret could only occur when a subject learns the outcome of a non-chosen option. Hence this result can be seen as evidence against regret theory. We shall argue that there is a possible interpretation of regret theory which is compatible with this result.     

Empower my decisions: The effects of power gestures on confirmatory information processing

Recent research has shown that social power systematically influences information processing in many ways, and can be induced simply via powerful gestures or postures. The current studies investigated the impact of embodied power on confirmatory information processing after decision making. Based upon previous social power research, we hypothesized that individuals who posed in powerful ways (making a clenched fist or sitting in an open, expansive posture) would systematically prefer decision-consistent over decision-inconsistent information; an effect known as selective exposure, or biased assimilation. Four studies consistently indicated that bodily positioning associated with high levels of power induced greater confirmatory tendencies in the evaluation and search stages of a subsequent, decision-relevant information task (Studies 1–4). This tendency is unlikely to be due to mere physical strain (Study 4), and was mediated by differences in experienced decision certainty (Studies 3 and 4); indicating that the embodiment of high power makes people more confident regarding the validity of their decisions. Consequently, high-power posers systematically prefer information that is consistent with their decision preference.     

In praise of vagueness: malleability of vague information as a performance booster

Is the eternal quest for precise information always worthwhile? Our research suggests that, at times, vagueness has its merits. Previous research has demonstrated that people prefer precise information over vague information because it gives them a sense of security and makes their environments more predictable. However, we show that the fuzzy boundaries afforded by vague information can actually help individuals perform better than can precise information. We document these findings across two laboratory studies and one quasi-field study that involved different performance-related contexts (mental acuity, physical strength, and weight loss). We argue that the malleability of vague information allows people to interpret it in the manner they desire, so that they can generate positive response expectancies and, thereby, perform better. The rigidity of precise information discourages desirable interpretations. Hence, on certain occasions, precise information is not as helpful as vague information in boosting performance.     

Context effects on group-based employee selection decisions

The decoy effect occurs when preferences between two alternatives reverse as a result of the manipulation of a third alternative (i.e., a decoy) such that it is dominated by only one of the two original alternatives. Previous research has demonstrated this effect in employee selection decisions, but only when decisions were made by individuals. The present investigation was designed to test the generalizability of the phenomenon to decisions made by groups, and to determine the influence of process and outcome accountability on the decoy effect. Results showed that the overall decoy effect held for both individual and group decisions. However, for both individuals and groups, the decoy effect held only when decision makers knew they would have to justify their decision processes.     

Gambling decisions and information about expected value

Four experiments were conducted to study the effects of information about expected value (EV) on choices among gambles. The subjects were presented with one or more sets of 17 gambles and were asked to select the one gamble they would prefer from each of these sets. In all experiments the EV concept was explained to the subjects and after this EV was displayed for each choice alternative. The experiments varied with respect to (a) the structure of the gambling alternatives, (b) the type of experimental design (within- or between-subjects design), and (c) whether repeated gambles were allowed or not. The EV information had marginal effects on the subjects choice behavior except when repeated gambles were allowed. It is suggested that subjects, rather than being guided by an abstract composite measure, such as EV, attempted to find a gamble having some concrete pattern of features.     

The effects of scenario-based risk information on perceptions of susceptibility to Chlamydia and HIV

Abstract

Objectives: The Self-Report Habit Index (SRHI) was originally reported as one-dimensional; however, habit has been described as characterised by several features. Moreover, one-dimensional models for the SRHI have demonstrated poor fit. Therefore, we aimed to compare multidimensional models with a one-dimensional model in both snacking and physical activity habits, besides examining further instrument characteristics.

Design: A cross-sectional study was conducted with high school and university students (n?=?555).

Main outcome measure: The SRHI adapted for physical activity and for snaking habits was applied at one time point.

Results: Nested models with one factor, two factors and three factors were compared. Next, a hierarchical second-order model was tested, and further validity issues, as well as invariance between habits, were examined. Three-dimensional models represented a better fit for both habits. However, fit was still inadequate in the snacking version. In addition, discriminant validity concerns emerged for the physical activity SRHI. Moreover, invariance between the snacking and the physical activity versions was not confirmed.

Conclusions: Considering the SRHI as composed by the dimensions of ‘lack of awareness’, ‘lack of control’ and ‘history of behavioural repetition’ seems to be more accurate. Nevertheless, our findings suggest that further research is needed.     

Consensus effects in categorization decisions

A previous study (Gilat et al., J. Exp. Psychol. Appl. 3 (1997) 83) has shown that the incentive to reach consensus can raise the tendency to rely on base rates in signal detection decisions and can reduce the probability that less likely events will be accurately classified. This phenomenon was named the “consensus effect”. The current study assesses the conditions under which this effect develops and in particular the effects of information about the game and of the incentive structure on the learning process. The results of three experiments show that the learning process slows when participants have information about the actual state of nature. This finding is captured by a reinforcement learning model with the assumption that information narrows the distribution of the initial propensities for choosing among cutoffs. The results are further evidence for the utility of the combination of learning models and analyses of cognitive processes for the prediction of decision making in situations involving multiple players.     

The effects of labelling,expert testimony,and information processing mode on juror decisions in SVP civil commitment trials

Expert witnesses offering testimony in sexually violent predator civil commitment trials may use diagnostic labels that are either familiar (e.g. ‘psychopath’) or unfamiliar (e.g. ‘paraphilia’) to jurors. Using predictions based on cognitive experiential self-theory, we explored the influence of testimony type (clinical versus actuarial) and diagnostic label (psychopath versus paraphilia) on jurors motivated to adopt either an experiential processing mode (PM; in which heuristic cues may be strongly relied upon) or an analytic rational PM. Consistent with previous research, our results indicated that when given a psychopathic diagnostic label, mock jurors motivated to process information experientially were more influenced by clinical testimony, whereas mock jurors induced into a rational mode were more influenced by actuarial testimony. However, experientially oriented jurors given a paraphilia diagnostic label did not show the expected influence of clinical expert testimony, and instead were more persuaded by actuarial testimony. These findings are discussed from a judgement and heuristics cues framework. The implications of several procedural suggestions are examined. Copyright © 2009 John Wiley & Sons, Ltd.     

Information as a deterrent against sex discrimination: The effects of applicant sex and information type on preliminary employment decisions

To investigate the idea that providing information about a job applicant's past performance can avert sex discrimination in preliminary employment decisions, an experiment was conducted in which both Applicant Sex and Type of Information were varied. As predicted, highly job-relevant information was found to produce less differential treatment of male and female applicants than did information of low job relevance or no information at all. Also as predicted, the type of information provided had more impact on reactions to female applicants than male applicants, with high job-relevance information producing the most favorable responses and, unexpectedly, low job-relevance information producing the least favorable responses to female applicants. Additional results suggested that these effects were mediated by the degree to which female job applicants were characterized by stereotypic attributes. The findings are interpreted as supportive of the idea that undermining the information value of sex stereotypes as a basis of inference about the attributes of a given woman can function to reduce sex discrimination in employment settings.     

Differential information use for near and distant decisions

Whether choosing a cell phone, a senator, or a kitchen appliance, consumers today quickly find themselves awash in information from commercials, magazines, and websites. Whereas some of this information is broad, decontextualized, and abstracted across multiple individuals and instances, other information is more closely tied to a single experience within one specific context. The present research asks: under what circumstances do people rely on abstracted averages, and when are they swayed by another individual’s particular experience? Across three studies, we show that temporal distance increases the relative weight placed on aggregate vs. individualized information when participants are asked to choose between two sleeping pills, migraine medications, or kitchen appliances, and that this process impacts not only evaluation but also willingness to pay and choice. Potential implications for evaluation, decision-making, and base-rate utilization are discussed.     

Distortion of probability and outcome information in risky decisions

Substantial evidence indicates that information is distorted during decision making, but very few studies have assessed the distortion of probability and outcome information in risky decisions. In two studies involving six binary decisions (e.g., banning blood donations from people who have visited England, because of “mad cow disease”), student and nonstudent participants distorted their evaluations of probability and outcome information in the direction of their preferred decision alternative and used these biased evaluations to update their preferences. Participants also evaluated the utilities of possible outcomes more positively when the outcomes could follow only from the preferred alternative and more negatively when they could follow only from the competing alternative. Such circular reasoning is antithetical to the normative consequentialist principles underlying decision analysis. Presenting numerical information as precise values or as ranges of values did not significantly affect information distortion, apparently because the manipulation did not affect perceived ambiguity as intended.     

Effects of active information processing on the understanding of risk information

Two experiments investigated effects of active processing of risk information on participants' understanding and judgments. It was hypothesized that more active processing would lead to better understanding and differences in affective judgments (e.g. increased satisfaction and reduced perceived risk to health). In both experiments participants were given a written scenario about their being prescribed a fictitious medication. This medication was said to cause side effects in 2% of people who took it. Before answering a series of written questions, participants in the active conditions of both experiments were asked to carry out a reflective task (portraying the size of risk on a bar chart in Experiment 1 and answering a reflective question in Experiment 2). The results showed that active participants rated the likelihood of experiencing possible side effects significantly lower than passive participants (Experiment 1), and that active participants were significantly more satisfied with the information and judged perceived risk to health from taking the medication significantly lower than passive participants (Experiment 2). In both experiments, active participants were significantly more correct in their probability and frequency estimates. The studies demonstrate that active processing of risk information leads to improved understanding of the information given. This has important implications for risk communication. In the context of health, better understanding should lead to improved decision‐making and health outcomes. Copyright © 2004 John Wiley & Sons, Ltd.     

An information - expectation framework for decisions under uncertainty

Despite being in existence for many decades, normative decision theory has not become a commonly used tool for real-world decisions. This paper considers the reasons for this situation and suggestions for circumventing them. The main suggestion involves a two-stage framework in terms of the information available to the decision maker and his/her expectations under the available acts. This framework is well suited for decisions with incomplete structure, which is typical of real decision situations. Within this framework a specific multiplicative model is also discussed.     

Boundary effects on forced drainage through aqueous foam

The flow of liquid through foam confined in vertical tubes was investigated by measuring the velocity v_f of the liquid front forced down by gravity for various flow rates Q. The power law relating the velocity to flow rate of the incoming liquid (v_f