Good fortune but bad luck? Predictable versus unpredictable gains and losses in risky choice

This study examines the effects of two different types of good and bad experiences on risk‐taking preferences: fortune and luck. We define fortune as a relatively stable positive or negative context within which choices are made and luck as a more unpredictable series of better or worse outcomes. With the use of a lottery‐based paradigm, fortune was operationalized as a preponderance of all‐gain or all‐loss two‐outcome option pairs within a larger set of mixed‐outcome control lotteries. Luck was operationalized as the experienced frequency of better versus worse outcomes when playing the lotteries. We predicted that fortune and luck would lead to opposite risk‐taking tendencies within control lotteries. An assimilation effect of fortune was predicted, with risk‐averse preferences for control lotteries when surrounded by good fortune and risk‐seeking preferences when surrounded by bad fortune. In contrast, we expected that high rates of success with good luck would lead to risk‐seeking preferences, whereas low rates of success with bad luck would yield risk‐averse preferences. Our predictions for fortune were confirmed; however, there was no evidence of any effect on risk taking based on experiencing good versus bad luck. Moreover, we observed a striking disconnect between impressions of the experience and risk‐taking behavior. Both identification and attributions of luck and fortune were highly correlated with the number of gain outcomes that participants experienced but were uncorrelated with risk taking. We review these surprising findings considering several prominent theories of risk‐taking behavior, particularly drawing attention to the differential roles of predecisional and postdecisional information in choice.     

The Influence of Time Estimation and Time‐Saving Preferences on Learning to Make Temporally Dependent Decisions from Experience

In this paper, we merge research related to experiential learning, temporal perception, and the value of time and money by examining decisions where the timing of action (response) determines the outcome received. We predicted that time‐saving preferences and impatience would decrease maximization (i.e., taking action when it returned the largest reward), and that the constraints of temporal perception would compound their effects. Across three studies, participants undershot on average (i.e., responded earlier than the period of time during which a response would return the maximal reward) showed a preference for shorter‐delay options and often did not find the maximal reward. In addition, participants' reliance on temporal perception increased undershooting, increased preferences for shorter‐delay options, and reduced maximization. Nevertheless, participants who found the maximal reward continued to maximize at a high rate rather than opting for shorter delays and smaller rewards. Thus, while most participants appeared to have a preference for saving time, most behaved as reward maximizers rather than temporal discounters. Copyright © 2017 John Wiley & Sons, Ltd.     

“All‐or‐None” Versus “Most‐or‐Some” Options in Risky Choice: Effects of Domain and Handedness

Two methodological variants of Kahneman and Tversky's Asian disease scenario were investigated. One variant involved replacing the “all‐or‐none” outcome scenarios of the risky choice with “most‐or‐some” scenario outcomes, and the second variant involved replacing the negative domain of lives lost with a positive domain of jobs created. In addition, the effects of strength of handedness, a variable related to individual differences in risk perception, were examined. Results indicated that standard framing effects were obtained across both domains, with a decrease in risky choice under the gain domain. Scenario type also interacted with handedness, such that the all‐or‐none scenario yielded framing effects for consistent (strong)‐handers only, whereas the most‐or‐some scenario yielded framing effects for inconsistent (mixed)‐handers only (consistent‐handers are those who use the same hand exclusively for almost all activities). These results demonstrate that framing effects are strongly influenced by the presence versus absence of extreme/absolute outcomes and that individuals (in this case, decision makers with varying degrees of handedness strength) are differentially sensitive to different pieces of information. Copyright © 2014 John Wiley & Sons, Ltd.     

On the Decision to Explore New Alternatives: The Coexistence of Under‐ and Over‐exploration

The decision whether to explore new alternatives or to choose from familiar ones is implicit in many of our daily activities. How is this decision made? When will deviation from optimal exploration be observed? The current paper examines exploration decisions in the context of a multi‐alternative “decisions from experience” task. In each trial, participants could choose a familiar option (the status quo) or a new alternative (risky exploration). The observed exploration rates were more sensitive to the frequent outcome from choosing new alternatives than to the average outcome. That is, the implicit decision whether to explore a new alternative reflects underweighting of rare events: Over‐exploration was documented in “Rare Disasters” environments, and insufficient exploration was evident in “Rare Treasures” environments. In addition, the results reveal a decrease in exploration of new alternatives over time even when it is always optimal and some exploration even when it is never reinforcing. These results can be captured with models that share a distinction between “data collection” and “outcome‐driven” decision modes. Under the data collection mode, the decision maker collects information about the environment, to be used in future choices. Under the outcome‐driven mode, the decision maker relies on small samples of previous experiences with familiar versus unfamiliar alternatives, before the selection of a specific alternative. The predictive value of a two‐parameter “explorative sampler” quantification of these assumptions is demonstrated. Copyright © 2013 John Wiley & Sons, Ltd.     

The role of self‐esteem and anxiety in decision making for self versus others in relationships

Previous research has documented a tendency for people to make more risk‐seeking decisions for others than for themselves in relationship scenarios. Two experiments investigated whether this self–other difference is moderated by participants' self‐esteem and anxiety levels. In Experiment 1, lower self‐esteem and higher anxiety levels were associated with more risk‐averse choices for personal decisions but not for decisions for others. Therefore, participants with lower self‐esteem/higher anxiety showed greater self–other differences in comparison to participants with higher self‐esteem/lower anxiety levels. Experiment 2 demonstrated that this effect was largely mediated by participants' expectations of success and feelings about potential negative outcomes. These results are discussed in the context of “threats to the self,” with a central role played by anxiety and self‐esteem threats in personal decision making but not in decision making for others. Copyright © 2005 John Wiley & Sons, Ltd.     

Investigating the roots of the favourite–longshot bias: an analysis of decision making by supply‐ and demand‐side agents in parallel betting markets

This paper offers new insights into the behavioural origins of the ‘favourite–longshot’ bias — an established feature of betting markets, whereby longshots win less often than the subjective probabilities imply and favourites more often. A number of alternative explanations has been offered for this phenomenon but the main debate focuses on whether it is caused by the behaviour of those supplying betting markets (bookmakers) or of the demand‐side agents in these markets (bettors) . This study analyses a new data source which offers detailed information for a large sample of recent UK horseraces on decision‐making behaviour within the parimutuel and the parallel bookmaker‐based betting markets. The results offer strong evidence for the existence of the ‘favourite–longshot’ bias in bookmaker‐based markets, with a corresponding absence of such an effect in the parimutuel case. These results offer support for the view that the origins of the ‘favourite–longshot’ bias lie principally in the decisions of bookmakers rather than in the decisions of bettors. Copyright © 2000 John Wiley & Sons, Ltd.     

Combining Information for Quantitative Decision‐making in Drug Development

Taking decisions during the development of a new drug requires combining many and varying pieces of information. The interconnections between these different pieces of information are often only partially known and in some cases merely conjectured. Despite this uncertainty, decisions must be taken – often with regard to the balance of risk and benefit – in order to make progress. A clear, consistent and efficient methodology for describing the structure of a project and the comprehensive state of knowledge at any point in time is required in order to add transparency to the decision process. A viable methodology must allow for a natural characterization of the uncertainty inherent in the drug development process and a relatively easy implementation. We present a possible solution that satisfies these requirements. The foundation of the proposed approach is based on a beta‐binomial update mechanism well known in Bayesian statistics. This work provides a consistent framework for solving hierarchical multicriteria decision problems. Copyright © 2014 John Wiley & Sons, Ltd.     

The Implementation of Mindfulness‐Based,Trauma‐Informed Parent Education in an Underserved Latino Community: The Emergence of a Community Workforce

In this practice‐oriented program review, a mindfulness‐based, trauma‐informed parent intervention, called Safe, Secure and Loved? (SSL), designed to strengthen nurturing parenting and children's resilience, was implemented in an underserved Latino community. Across 5 years, a volunteer community workforce of promotoras transformed an academic–community research partnership into a community‐led program partnership and established sustainable agency parent education programming. To better understand this transformation, we used a modified implementation science (IS) framework to structure interviews from members of the academic–community research partnership. Findings suggest that the commitment and cultural expertise of the volunteer community workforce acted as the major leadership drivers to create the community‐led program partnership. Employing mindfulness‐based, trauma‐informed parent education designed to promote nurturing parenting and children's resilience may be an effective training model to engage and mobilize a volunteer community workforce from an underserved community.     

Movies as a Therapeutic Technique in School‐Based Counseling Groups to Reduce Parent–Adolescent Conflict

The authors evaluated a school‐based group counseling program aimed at reducing parent–adolescent conflict and assessing the unique contribution of movie therapy. Participants were 173 Arab adolescents who scored high on conflict with parents. Students were divided among 3 conditions: a treatment intervention with movies, a treatment intervention without movies, and a no‐treatment control group. Results indicated more favorable outcomes in both interventions compared with the control group, with no effect of movies.