An experimental investigation into the effects of uncertainty on rational behaviour in two person symmetric games

This paper reports the results of two experiments to investigate the effects of payoff alterations in two-person symmetric games. The initial experiment involved 60 subjects, each of whom could earn from £0 to £15, depending on the interaction of their decisions and the unknown decisions of one other person. All decisions were made without feedback to isolate the impact on subjects' behaviour of the game's parameters. A primary aim was to see if the games had strategically distinct structures, or whether uncertainty over the choice rule of others would influence choice behaviour and lessen this independence. An alternative model of rational choice, making allowance for uncertainty in the decision environment, was proposed to capture subjects' behaviour. The results indicated that the frontiers of most of the games had no impact on choice behaviour other than through the magnitude of the change in payoffs. The model received strong support across an identifiable set of ‘frontierless’ games. However, the variety of games was not sufficient to provide a comprehensive test. A second experiment was recently held to close these gaps. Fifty subjects took part, each of whom earned from A$0 to A$24, averaging A$17. The findings provided broad additional support for the theory.     

Understanding the past: Investigating the role of availability,outcome, and hindsight bias and close calls in visual pilots' weather‐related decision making

Past events, such as “close calls,” can provide valuable learning opportunities, especially in aviation, where learning from past errors could potentially help to avoid future incidents or accidents. This study investigated whether three cognitive biases (availability, outcome, and hindsight bias) could influence pilots' perceptions of past events, which in turn might influence their perception of events yet to occur. Study 1 found that pilots were influenced by the outcome of a flight when judging decision quality. Of particular interest was that pilots interpreted events that led to a close call very similarly to those that had positive outcomes, which may reinforce risky behaviour. However, although adequately powered, Study 1 found no evidence of availability bias: Exposure to one of four outcomes did not appear to influence later decisions. Study 2 found that having read a flight report, particularly if it ended in a crash, pilots consistently overestimated their likelihood of predicting the actual outcome, which may reduce any opportunity to learn. These findings suggest that two of the three cognitive biases explored in this study could influence a pilot's perception of past events in ways that may adversely affect how they make future decisions that in turn may affect flight safety.     

Managers' variance investigation decisions: an experimental examination of probabilistic and outcome ambiguity

Information ambiguity is prevalent in organizations and may influence management decisions. This study examines, given imprecise probabilities or outcomes, how managers decide which department's performance to investigate further when they are provided with performance benchmarks expressed in numerical intervals. Seventy‐nine MBA students participated in two experiments involving investigation decisions. We presented participants with interval benchmarks of a firm's expenses. Being below or above the benchmark should have been seen as equally negative. We found that, when facing outcome ambiguity, our participants consistently preferred to investigate further those departments whose performance was described as having an ambiguous outcome (when the outcome's range was centered either below or above the interval benchmark). However, when facing probabilistic ambiguity, there were two predominant choice patterns: consistently choosing to investigate the department whose performance is described with an ambiguous probability, or consistently choosing to investigate the department with unambiguous performance. To gain further insight, we conducted a follow‐up study collecting written protocols of participants' reasons for making choices involving ambiguous performance information. The results show that our participants displayed similar decision‐making processes when facing outcome ambiguity and probabilistic ambiguity. Copyright © 2001 John Wiley & Sons, Ltd.     

Instance‐based learning in dynamic decision making

This paper presents a learning theory pertinent to dynamic decision making (DDM) called instancebased learning theory (IBLT). IBLT proposes five learning mechanisms in the context of a decision‐making process: instance‐based knowledge, recognition‐based retrieval, adaptive strategies, necessity‐based choice, and feedback updates. IBLT suggests in DDM people learn with the accumulation and refinement of instances, containing the decision‐making situation, action, and utility of decisions. As decision makers interact with a dynamic task, they recognize a situation according to its similarity to past instances, adapt their judgment strategies from heuristic‐based to instance‐based, and refine the accumulated knowledge according to feedback on the result of their actions. The IBLT's learning mechanisms have been implemented in an ACT‐R cognitive model. Through a series of experiments, this paper shows how the IBLT's learning mechanisms closely approximate the relative trend magnitude and performance of human data. Although the cognitive model is bounded within the context of a dynamic task, the IBLT is a general theory of decision making applicable to other dynamic environments.     

Dynamic probability of reinforcement for cooperation: Random game termination in the centipede game

Experimental games have previously been used to study principles of human interaction. Many such games are characterized by iterated or repeated designs that model dynamic relationships, including reciprocal cooperation. To enable the study of infinite game repetitions and to avoid endgame effects of lower cooperation toward the final game round, investigators have introduced random termination rules. This study extends previous research that has focused narrowly on repeated Prisoner's Dilemma games by conducting a controlled experiment of two‐player, random termination Centipede games involving probabilistic reinforcement and characterized by the longest decision sequences reported in the empirical literature to date (24 decision nodes). Specifically, we assessed mean exit points and cooperation rates, and compared the effects of four different termination rules: no random game termination, random game termination with constant termination probability, random game termination with increasing termination probability, and random game termination with decreasing termination probability. We found that although mean exit points were lower for games with shorter expected game lengths, the subjects' cooperativeness was significantly reduced only in the most extreme condition with decreasing computer termination probability and an expected game length of two decision nodes.     

Multiple Determinants of Framing Referents in Tax Reporting and Compliance

Prospect theory's implications for tax reporting have been investigated primarily by examining taxpayers' risk preferences surrounding two potential reference points: their current cash position and their expectations regarding payments and/or refunds due. Evidence has generally supported the role of cash position in framing reporting decisions while failing to support a similar role for expectations. However, most research examining the role of expectations in framing risky choice has experimentally assigned expectations to decision makers. If expectations become meaningful referents via adaptation, the construct validity of experimentally-assigned expectations is suspect. Using participants' own prior tax filings to determine expectations, we find evidence that expectations and cash position jointly frame the filing decision. Further, consistent with adaptation serving as the mechanism through which expectations frame reporting preferences, we find that the severity of the framing effect attributed to expectations was significantly mitigated when time to adapt to variances from those expectations was allowed.     

Risk and Prisoner's Dilemma: A Reinterpretation of Coombs' Re‐parameterization

We propose a model to measure risk in a prisoner's dilemma based on Coombs' (1973) re‐parameterization of the game as an individual risk decision‐making task that chooses between a gamble of cooperation and another gamble of defection. Specifically, we propose an index, r, to represent the risk associated with cooperation relative to defection. In conjunction with Rapoport's (1967) index of cooperation (K), our formulation of risk allows us to construct games that vary in risk (as indexed by r) while controlling for cooperativeness (as indexed by K). Following utility analysis that models risk seeking as a convex utility function and risk averse as a concave function, we predict that risk‐seeking people cooperate more in games that the cooperation choice is more risky, whereas risk‐averse people cooperate more in games that the cooperation choice is less risky. In the three studies that we varied game parameters, used different measures of risk orientation and prosocial orientation and used different experimental procedures, we found robust results supporting our predictions. Theoretical analysis of our formulation further suggests that risk and cooperativeness of a prisoner's dilemma game is not entirely independent. Games that have a higher cooperativeness index are necessarily more risky. Copyright © 2011 John Wiley & Sons, Ltd.     

Religion and Decisions About Marriage,Residence, Occupation,and Children

Using data from the first wave of the Portraits of American Life Study (PALS), we consider the extent to which people report that religious factors influence their decisions about career choice, marriage, residency, and number of children. We find significant positive relationships between the importance of religion or religious faith and the perceived influence of religious factors on one's choice of occupation, decision about whether or whom to marry, decision about where to live, and decision about how many children to have. We also observe significant interactions between the importance of religion or religious faith and religious tradition, but we find no consistent patterns across our decision‐making outcomes. Our preliminary conclusions raise significant questions about the broader relationship between religion, perception, and decision making.     

行人过街的认知心理过程和模型

随着交通系统的复杂化,行人安全受到的威胁日益增加。本文以行人穿过马路的心理步骤为切入点,对行人观察感知、判断决策方面的研究进行综述。在观察感知方面,主要分析了观察内容、策略及注意失误的原因,在判断决策方面,介绍了内部心理机制中相关的理论模型,包括效用理论、计划行为理论,以及具体行为机制中的可接受间隙理论,并重点分析了具体行为机制里闯红灯行为的影响因素。最后,本文提出了行人过街的认知心理模型,为以后的行人研究提供理论借鉴,为交通安全提供实践依据。     

The effects of action,normality, and decision carefulness on anticipated regret: Evidence for a broad mediating role of decision justifiability

Two distinct theoretical views explain the effects of action/inaction and social normality on anticipated regret. Norm theory (Kahneman & Miller, 1986) emphasises the role of decision mutability, the ease with which one can imagine having made a different choice. Decision justification theory (Connolly & Zeelenberg, 2002) highlights the role of decision justifiability, the perception that the choice was made on a defensible basis, supported by convincing arguments or using a thoughtful, comprehensive decision process. The present paper tests several contrasting predictions from the two theoretical approaches in a series of four studies. Study 1 replicated earlier findings showing greater anticipated regret when the chosen option was abnormal than when it was normal, and perceived justifiability mediated the effect. Study 2 showed that anticipated regret was higher for careless than for careful decisions. Study 3 replicated this finding for a sample holding a different social norm towards the focal decision. Finally, Study 4 found that, when decision carefulness, normality and action/inaction were all specified, only the former showed a significant effect on anticipated regret, and the effect was again mediated by perceived justifiability. Decision justification theory thus appears to provide a better account of anticipated regret intensity in this context than does norm theory.     

The probabilistic nature of preferential choice

Previous research has developed a variety of theories explaining when and why people's decisions under risk deviate from the standard economic view of expected utility maximization. These theories are limited in their predictive accuracy in that they do not explain the probabilistic nature of preferential choice, that is, why an individual makes different choices in nearly identical situations, or why the magnitude of these inconsistencies varies in different situations. To illustrate the advantage of probabilistic theories, three probabilistic theories of decision making under risk are compared with their deterministic counterparts. The probabilistic theories are (a) a probabilistic version of a simple choice heuristic, (b) a probabilistic version of cumulative prospect theory, and (c) decision field theory. By testing the theories with the data from three experimental studies, the superiority of the probabilistic models over their deterministic counterparts in predicting people's decisions under risk become evident. When testing the probabilistic theories against each other, decision field theory provides the best account of the observed behavior.     

T-ECHO: model of decision making to explain behaviour in experiments and simulations under time pressure

Objectives: To explain the mechanisms of decision making in sports. The ‘Decision Field Theory’ by Townsend and Busemeyer ((1995). Dynamic representation of decision-making. In R. F. Port & T. von Gelder (Eds.), Mind as motion (p. 101). Cambridge: MIT Press) was applied to a ball game situation.Design/Method: A situation in basketball was simulated and used in two experiments. The simulation was realized using a local neural network (Behav. Brain Sci., 12 (1989) 435) and was based on a decision model T-ECHO (Tactical decision — Explanatory Coherence by Harmonic Optimization). Experiment 1 (n=53) tested decisions in a video-based laboratory decision task. Learning took place by watching video clips and was significantly better for implicit and explicit groups than for a control group. Experiment 2 (n=34) replicated the results by using incidental and intentional learning groups. Finally, comparisons between behaviour output of neural networks and participants' decision making were made.Results: A good fit between simulation and participant behaviour was shown. Time pressure explained preference reversals from a dynamic viewpoint.Conclusions: The use of simulations and decision experiments lead to a fruitful way to understand the mechanisms of decision making in ball games.     

Lay Personality Theories in Interactive Decisions: Strongly Held,Weakly Supported

In interactive decisions, cues to what others will do are important in forming a strategy. Information about others' personalities appears to be potentially valuable for this purpose. We report a series of four studies examining how information about another actor's personality influences people's own choices in interactive decisions. The studies found widespread beliefs that others' personality characteristics are strongly predictive both of broad classes of decision behavior (competition/cooperation, risk‐seeking/risk‐aversion) (Study 1) and of specific choices (Study 2) in single‐agent settings. These beliefs extended to predicting others' choices in interactive decisions (Study 3) and to shaping the predictor's own decisions in interactive play in Chicken and Assurance games (Study 4). Overall, we found extensive evidence that laypeople believe that the personality traits we selected (angry‐hostility, anxiety, assertiveness, excitement‐seeking, and warmth) have substantial effects on behavior in interactive decisions and they act on those beliefs when making their own decisions. The empirical evidence supporting the predictive validity of these traits was, however, quite weak. Copyright © 2014 John Wiley & Sons, Ltd.     

自我框架、风险认知和风险选择

对行为决策中“框架效应”(Framing Effect)的研究进行了拓展：探讨了自我框架对风险决策的影响及其机制。面对运用图示方法表示的管理,健康,及投资方面的风险决策问题,参与者自主地选择对方案的描述（自我框架）。研究有四个主要发现：1）自我框架对风险选择的效应部分显著,而且对风险选择的影响方向因情境的不同而不同;2）机会威胁认知是自我框架效应的一个中介变量;3）自我框架在情绪语气上的差异对风险决策有显著影响：决策者对一个备选方案（确定性或风险性方案）相对于另一个备选方案的自我描述的情绪语气越积极正面,这个方案被选择的可能性越大;4）决策者的机会-威胁认知是这一自我框架效应的部分中介变量。也就是说,对备选方案的自我描述语气作为一种对决策信息的编码影响了风险（机会和威胁）认知,进而影响决策者的风险偏好和选择     

From individual preference construction to group decisions: Framing effects and group processes

Two choice tasks known to produce framing effects in individual decisions were used to test group sensitivity to framing, relative to that of individuals, and to examine the effect of prior, individual consideration of a decision on group choice. Written post-decision reasons and pre-decision group discussions were analyzed to investigate process explanations of choices made by preexisting, naturalistic groups. For a risky choice problem, a similar framing effect was observed for groups and individuals. For an intertemporal choice task where consumption was either delayed or accelerated, naïve groups (whose members had not preconsidered the decision) showed a framing effect, less discounting in the delay frame, opposite to that observed in individuals. Predecided groups showed a non-significant effect in the other, expected direction. In all cases, process measures better explained variability in choices across conditions than frame alone. Implications for group decision research and design considerations for committee decisions are addressed.     

Behavioural Consistency Within the Prisoner's Dilemma Game: The Role of Personality and Situation

Mixed‐motive games represent situations that confront people with a conflict between cooperative and non‐cooperative alternatives. Despite this common basis, recent research has shown that the consistency of people's choices across different mixed‐motive games is rather low. The present research examined behavioural consistency within the same mixed‐motive game, by presenting participants with a series of one‐shot Prisoner's Dilemma Games. Across this set of games, payoffs were manipulated in order to intensify or weaken the conflict between self and the other party while maintaining the game's underlying structure. Our findings indicate that significant differences in choice behaviour are observed as a function of both situational (i.e. manipulations of the Prisoner's Dilemma Game's payoff structure) and personality differences (i.e. individual differences in personality and motivational traits). Moreover, our included situational variables and personality features did not interact with each other and were about equally impactful in shaping cooperation. Crucially, however, despite the significant behavioural differences across game variants, considerable consistency in choices was found as well, which suggests that the game's motivational basis reliably impacts choice behaviour in spite of situational and personality variations. We discuss implications for theorizing on mixed‐motive situations and elaborate on the question how cooperation can be promoted. © 2018 European Association of Personality Psychology     

决策信心在信息化从众中的作用

研究采用JAS范式,通过操纵群体信息的性质（支持和反对）以及一致性程度,考察了决策信心在信息化从众过程中的作用。结果表明：（1）个体仅在接收到反对信息时会发生决策的偏转,表现出从众;（2）群体参照信息能够显著影响个体的信心：支持性的群体信息使个体的信心显著增高,而反对性的群体信息使信心显著降低,且表现出一种“负性偏向”（即个体对来自群体的负性信息更加敏感）;（3）在反对条件下,个体信心降低的程度能够很好地预测其决策偏转的概率,即信息化从众行为。这说明,决策信心可能在信息化从众中起着核心的中介作用——反对性的群体信息使得决策信心下降,而决策信心的下降导致了决策的偏转,从而表现出从众行为。     

Attitude Change Toward Animal Experimentation in an Academic Setting

Social values theory was used to examine how parents make decisions for their adolescent children. Social values theory states that decision making for others is based on the social value of an action, leading to a norm for how to decide for others, whereas self decisions are influenced by a number of additional factors. Consistent with a risk-aversion norm, in hypothetical health and safety scenarios parents made more risk-averse decisions for their adolescent children than for themselves. Further, the level of risk and inconvenience affected self decisions more than decisions for one's child. A second study showed that the norm was stronger for decisions for one's child than for oneself and more related to parents’ decisions for their child than for themselves. In sum, parents’ decisions for their children seem to be largely determined by a norm stating how they are supposed to decide, at least in the domain of health and safety. Implications for both the judgment and decision making and parenting literatures are discussed.