Unpacking buyer-seller differences in valuation from experience: A cognitive modeling approach

People often indicate a higher price for an object when they own it (i.e., as sellers) than when they do not (i.e., as buyers)—a phenomenon known as the endowment effect. We develop a cognitive modeling approach to formalize, disentangle, and compare alternative psychological accounts (e.g., loss aversion, loss attention, strategic misrepresentation) of such buyer-seller differences in pricing decisions of monetary lotteries. To also be able to test possible buyer-seller differences in memory and learning, we study pricing decisions from experience, obtained with the sampling paradigm, where people learn about a lottery’s payoff distribution from sequential sampling. We first formalize different accounts as models within three computational frameworks (reinforcement learning, instance-based learning theory, and cumulative prospect theory), and then fit the models to empirical selling and buying prices. In Study 1 (a reanalysis of published data with hypothetical decisions), models assuming buyer-seller differences in response bias (implementing a strategic-misrepresentation account) performed best; models assuming buyer-seller differences in choice sensitivity or memory (implementing a loss-attention account) generally fared worst. In a new experiment involving incentivized decisions (Study 2), models assuming buyer-seller differences in both outcome sensitivity (as proposed by a loss-aversion account) and response bias performed best. In both Study 1 and 2, the models implemented in cumulative prospect theory performed best. Model recovery studies validated our cognitive modeling approach, showing that the models can be distinguished rather well. In summary, our analysis supports a loss-aversion account of the endowment effect, but also reveals a substantial contribution of simple response bias.     

Analytische und tiefenpsychologisch fundierte Psychotherapien im Gutachterverfahren

Zusammenfassung. Ein Vergleich von 94 Erstberichten der analytischen Psychotherapie und 339 Erstberichten zur tiefenpsychologisch fundierten Psychotherapie im Rahmen der Richtlinienpsychotherapie mit Hilfe der Gutachtenkriterienliste (Rudolf et al. 2002) zeigt in beiden Verfahren sehr ?hnliche Quoten der gutachterlichen Befürwortung oder Nichtbefürwortung. Vergleichbares gilt für eine Gegenüberstellung von 61 analytischen und 147 tiefenpsychologisch fundierten Fortführungsberichten. Zweifel und Bedenken der Gutachter, die sich jedoch nicht auf die Entscheidung von Befürwortung/Nichtbefürwortung der Kostenübernahme auswirken, betreffen in der tiefenpsychologisch fundierten Psychotherapie Merkmale der prognostischen Einsch?tzung bezüglich des gew?hlten Verfahrens und der erkrankten Pers?nlichkeit sowie das Thema der Differentialindikation; bei Fortführungsberichten gelten die Zweifel der bearbeiteten Konfliktdynamik und prognostischen Einsch?tzung. Eine Ungleichbehandlung der beiden Verfahren durch die Gutachter kann aus diesen Daten nicht abgeleitet werden. In der Richtlinienpsychotherapie begründen die Therapeuten den Antrag der Patienten auf Psychotherapie durch einen ausführlichen anonymisierten Bericht über die Erkrankung der Patienten und die geplante Behandlung.

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Comparison of psychoanalytic and psychodynamic expertizes

Summary. On the basis of the criteria for expertizes (Rudof et al. 2002) we compared 94 therapy recommendations after the first assessment for psychoanalytic and 339 first recommendations for psychodynamic therapy, corresponding the psychotherapy guidelines. We found very similar proportions of approving and disapproving psychotherapy. The same result was found when comparing 61 psychoanalytic and 147 psychodynamic reports in the course of the therapies. Doubts and reservations of experts in the case of psychodynamic psychotherapy are first of all related to prognostic assessment of the chosen method and of the disturbed personality including the topic of differential indication. Expertizes about the course of therapies include first of all results about the dynamics of the conflict and prognostics. Our results do not support the opinion, that experts would make a difference along the two methods.

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Anschrift: Prof. Dr. med. G. Rudolf, Psychosomatische Universit?tsklinik, Thibautstra?e 2, 69115 Heidelberg, E-Mail: gerd_rudolf@med.uni-heidelberg.de     

A simple cell model with dominating opponent inhibition for robust contrast detection

Ein Modell kortikaler Einfachzellen mit dominanter opponenter Inhibition zur robusten Kontrastdetektion Zusammenfassung. Im primären visuellen Pfad wird Information in zwei getrennten, komplementären Domänen repräsentiert, den on- und off-Zellen. In dieser Arbeit untersuchen wir die Interaktion von on- und off-Zellen zur Generierung der Eingabe für eine kortikale Einfachzelle. Basierend auf physiologischen Studien schlagen wir einen Mechanismus vor, bei dem eine kortikale Einfachzelle aus beiden Domänen eine Eingabe erhält, wobei die Eingabe aus dem opponenten Pfad stärker gewichtet wird. Mit diesem Mechanismus der dominanten opponenten Inhibition können Antworten von kortikalen Einfachzellen auf Hell-Dunkel-Balken simuliert werden, die im primären visuellen Kortex der Katze gemessen wurden. Bei der Verarbeitung synthetischer und natürlicher Bilder können mit dem neuen Modell schärfere Antworten und bessere Rauschunterdrückung erreicht werden. Wir geben eine stochastische Analyse der Rauschunterdrückungscharakteristika des vorgeschlagenen Mechanismus und präsentieren detaillierte numerische Simulationen mit systematischen Parametervariationen. Die Resultate zeigen, dass das Modell kortikaler Einfachzellen mit dominanter opponenter Inhibition robuster gegenüber verrauschten Eingaben wird, weitgehend unabhängig von der Stärke des Rauschens. Diese Eigenschaft ist möglicherweise der Grund für die physiologisch gemessene dominante Inhibition und für die Repräsentation von Kontrastinformation in zwei komplementären Domänen. Basierend auf diesen Ergebnissen stellen wir die Hypothese auf, dass dominante opponente Inhibition im visuellen System verwendet wird, um in verrauschten Umgebungen Kontraste robust extrahieren zu können. Summary. In the primary visual pathway, information is represented in two distinct, complementary domains, namely "on" and "off" cells. In this work we examine how on and off cells may interact to form the input to simple cell subfields. On the basis of physiological evidence, we propose a mechanism of dominating opponent inhibition, where a simple cell subfield is driven by both on and off domains, receiving more heavily weighted input from the opponent pathway. We demonstrate that the model can account for physiological data on luminance gradient reversal recorded from simple cells in cat striate cortex. Next, we use the model for the processing of synthetic and natural images, showing that sharpness of response and robustness to noise can be increased by dominating opponent inhibition. Finally, we present a stochastic analysis of the noise-suppression characteristics of the proposed mechanism accompanied by detailed simulations with systematic parameter variations. Results show that dominating opponent inhibition makes the simple cell responses more robust to noise, largely independently of the amount of noise added. This property may give a rationale for the strong inhibition measured physiologically and for the representation of contrast information in two complementary domains. On the basis of these findings, we hypothesize that the visual system uses dominating opponent inhibition in order to robustly extract features in noisy environments.     

Forecasting from ignorance: the use and usefulness of recognition in lay predictions of sports events

Whereas previous studies on how people make forecasts of sports events focused primarily on experts, we examined how laypeople do this task. In particular, we (a) tested the recognition heuristic [Goldstein, D. G., & Gigerenzer, G. (2002). Models of ecological rationality: the recognition heuristic. Psychological Review, 109, 75-90], which requires partial ignorance, against four alternative mechanisms in describing laypeople's forecasts for the European Soccer Championships 2004; (b) evaluated how well recognition predicted the outcomes of the matches compared to direct indicators of team strength (e.g., past performance, rankings); and (c) studied the less-is-more effect--the phenomenon that knowing less leads to more correct forecasts than knowing more--which can occur when the recognition heuristic is used. Two groups of participants (laypeople, experts) made forecasts for the first-round matches of the tournament. Of the five candidate mechanisms, the recognition heuristic predicted laypeople's forecasts best: when applicable, it accounted for 90% of the forecasts. The recognition heuristic correctly predicted the actual winner of the matches substantially better than chance but did not achieve the accuracy of direct indicators of team strength. The experts made more correct forecasts than the laypeople. Moreover, we found no benefit of ignorance among the group of laypeople, although the conditions for a less-is-more effect specified by Goldstein and Gigerenzer were fulfilled.     

Autobiographical memory specificity and emotional disorder

The authors review research showing that when recalling autobiographical events, many emotionally disturbed patients summarize categories of events rather than retrieving a single episode. The mechanisms underlying such overgeneral memory are examined, with a focus on M. A. Conway and C. W. Pleydell-Pearce's (2000) hierarchical search model of personal event retrieval. An elaboration of this model is proposed to account for overgeneral memory, focusing on how memory search can be affected by (a) capture and rumination processes, when mnemonic information used in retrieval activates ruminative thinking; (b) functional avoidance, when episodic material threatens to cause affective disturbance; and (c) impairment in executive capacity and control that limits an individual's ability to remain focused on retrieval in the face of distraction.     

Mindfulness-based cognitive therapy as a treatment for chronic depression: A preliminary study

This pilot study investigated the effectiveness of Mindfulness-Based Cognitive Therapy (MBCT), a treatment combining mindfulness meditation and interventions taken from cognitive therapy, in patients suffering from chronic-recurrent depression. Currently symptomatic patients with at least three previous episodes of depression and a history of suicidal ideation were randomly allocated to receive either MBCT delivered in addition to treatment-as-usual (TAU; N = 14 completers) or TAU alone (N = 14 completers). Depressive symptoms and diagnostic status were assessed before and after treatment phase. Self-reported symptoms of depression decreased from severe to mild levels in the MBCT group while there was no significant change in the TAU group. Similarly, numbers of patients meeting full criteria for depression decreased significantly more in the MBCT group than in the TAU group. Results are consistent with previous uncontrolled studies. Although based on a small sample and, therefore, limited in their generalizability, they provide further preliminary evidence that MBCT can be used to successfully reduce current symptoms in patients suffering from a protracted course of the disorder.     

The relationship between visual attention and expertise in sports

ObjectivesGiven the prevalence of misperception and failed perception, particularly in attention-demanding team sports, surprisingly few studies have explored whether experts in team sports differ from other athletes and from non-athletes in their basic attention abilities.MethodIn this study, we examined group differences between experts in team handball (n = 40), athletes from non-team sports (n = 40), and novice athletes (n = 40) using a battery of three attention tasks: a functional field of view task, a multiple-object tracking task, and an inattentional blindness task.ResultsPerformance on the three attention tasks was largely independent, with no significant correlations among the tasks. Team sports experts showed no better performance on the basic attention tasks than did athletes from non-teams sports or novice athletes.ConclusionsThe finding that all basic attention tasks are largely independent provides preliminary support for the idea that attentional breadth, tracking performance, and inattentional blindness are distinct attentional processes. Our results demonstrate that sports expertise effects are unrelated to basic differences in attention—expertise does not appear to produce differences in basic attention and basic differences in attention do not appear to predict eventual expertise. Further experiments could focus on the ways in which more specific attentional strategies and processes contribute to sports performance.     

Social Relations and Cyberbullying: The Influence of Individual and Structural Attributes on Victimization and Perpetration via the Internet

Current research indicates that an alarming number of students are affected by cyberbullying. However, most of the empirical research has focused on psychological explanations of the phenomenon. In an explorative survey study based on the reconstruction of 2 complete school networks (N_P = 408), we expand the explanation strategies of cyberbullying to higher levels of social abstraction. Using statistical and structural analysis, and visual inspection of network environments, we compare explanations on individual and structural levels. In line with previous research, the findings support traditional explanations via sociodemographic and personality factors. However, the findings also reveal network positioning to be a comparably strong predictor for cyberbullying. Therefore, we argue that without taking structural factors into account, individual explanations will remain insufficient.     

Type of learning task impacts performance and strategy selection in decision making

In order to be adaptive, cognition requires knowledge about the statistical structure of the environment. We show that decision performance and the selection between cue-based and exemplar-based inference mechanisms can depend critically on how this knowledge is acquired. Two types of learning tasks are distinguished: learning by comparison, by which the decision maker learns which of two objects has a higher criterion value, and direct criterion learning, by which the decision maker learns an object's criterion value directly. In three experiments, participants were trained either with learning by comparison or with direct criterion learning and subsequently tested with paired-comparison, classification, and estimation tasks. Experiments 1 and 2 showed that although providing less information, learning by comparison led to better generalization (at test), both when generalizing to new objects and when the task format at test differed from the task format during training. Moreover, learning by comparison enabled participants to provide rather accurate continuous estimates. Computational modeling suggests that the advantage of learning by comparison is due to differences in strategy selection: whereas direct criterion learning fosters the reliance on exemplar processing, learning by comparison fosters cue-based mechanisms. The pattern in decision performance reversed when the task environment was changed from a linear (Experiments 1 and 2) to a nonlinear structure (Experiment 3), where direct criterion learning led to better decisions. Our results demonstrate the critical impact of learning conditions for the subsequent selection of decision strategies and highlight the key role of comparison processes in cognition.     

Dynamic search and working memory in social recall

What are the mechanisms underlying search in social memory (e.g., remembering the people one knows)? Do the search mechanisms involve dynamic local-to-global transitions similar to semantic search, and are these transitions governed by the general control of attention, associated with working memory span? To find out, we asked participants to recall individuals from their personal social networks and measured each participant's working memory capacity. Additionally, participants provided social-category and contact-frequency information about the recalled individuals as well as information about the social proximity among the recalled individuals. On the basis of these data, we tested various computational models of memory search regarding their ability to account for the patterns in which participants recalled from social memory. Although recall patterns showed clustering based on social categories, models assuming dynamic transitions between representations cued by social proximity and frequency information predicted participants' recall patterns best-no additional explanatory power was gained from social-category information. Moreover, individual differences in the time between transitions were positively correlated with differences in working memory capacity. These results highlight the role of social proximity in structuring social memory and elucidate the role of working memory for maintaining search criteria during search within that structure.