Intuition and affect have been neglected topics in the literature on human judgment and decision making for a long time. Judgmental processes involved in risk perception and decision making have traditionally been conceptualized as cognitive in nature, being based upon a rational and deliberate evaluation of the alternatives at hand. This picture started to change in the early 1980s when decision researchers looked beyond rational, deliberate, and cognitive processes and began to investigate intuitive — as opposed to deliberate — and emotional — as opposed to cognitive — aspects of decision making.

Recent research suggesting that people who maximize are less happy than those who satisfice has received considerable fanfare. The current study investigates whether this conclusion reflects the construct itself or rather how it is measured. We developed an alternative measure of maximizing tendency that is theory-based, has good psychometric properties, and predicts behavioral outcomes. In contrast to the existing maximization measure, our new measure did not correlate with life (dis)satisfaction, nor with most maladaptive personality and decision-making traits. We conclude that the interpretation of maximizers as unhappy may be due to poor measurement of the construct. We present a more reliable and valid measure for future researchers to use.

Decision research in psychology has traditionally been influenced by the homo oeconomicus metaphor with its emphasis on normative models and deviations from the predictions of those models. In contrast, the principal metaphor of cognitive psychology conceptualizes humans as ‘information processors’, employing processes of perception, memory, categorization, problem solving and so on. Many of the processes described in cognitive theories are similar to those involved in decision making, and thus increasing cross-fertilization between the two areas is an important endeavour. A wide range of models and metaphors has been proposed to explain and describe ‘information processing’ and many models have been applied to decision making in ingenious ways. This special issue encourages cross-fertilization between cognitive psychology and decision research by providing an overview of current perspectives in one area that continues to highlight the benefits of the synergistic approach: cognitive modeling of multi-attribute decision making. In this introduction we discuss aspects of the cognitive system that need to be considered when modeling multi-attribute decision making (e.g., automatic versus controlled processing, learning and memory constraints, metacognition) and illustrate how such aspects are incorporated into the approaches proposed by contributors to the special issue. We end by discussing the challenges posed by the contrasting and sometimes incompatible assumptions of the models and metaphors.

Using five variants of the Asian Disease Problem, we dissected the risky-choice framing effect by requiring each participant to provide preference ratings for the full decision problem and also to provide attractiveness ratings for each of the component parts, i.e., the sure-thing option and the risky option. Consistent with previous research, more risky choices were made by respondents receiving negatively framed versions of the decision problems than by those receiving positively framed versions. However, different processes were evident for those scoring high and low on numeracy. Whereas the choices of the less numerate showed a large effect of frame above and beyond any influence of their evaluations of the separate options, the choices of the highly numerate were almost completely accounted for by their attractiveness ratings of the separate options. These results are consistent with an increased tendency of the highly numerate to integrate complex numeric information in the construction of their preferences and a tendency for the less numerate to respond more superficially to non-numeric sources of information.

This article presents a theory of reasoning about moral propositions that is based on four fundamental principles. First, no simple criterion picks out propositions about morality from within the larger set of deontic propositions concerning what is permissible and impermissible in social relations, the law, games, and manners. Second, the mechanisms underlying emotions and deontic evaluations are independent and operate in parallel, and so some scenarios elicit emotions prior to moral evaluations, some elicit moral evaluations prior to emotions, and some elicit them at the same time. Third, deontic evaluations depend on inferences, either unconscious intuitions or conscious reasoning. Fourth, human beliefs about what is, and isn’t, moral are neither complete nor consistent. The article marshals the evidence, which includes new studies, corroborating these principles, and discusses the relations between them and other current theories of moral reasoning.

Ninety-eight Australian students participated in a functional replication of a study published by Dijksterhuis et al. (2006). The results indicated that unconscious thought does not necessarily lead to better normative decision making performance than conscious thought, which is contrary to the results found in Dijksterhuis et al. Since other studies showed a positive, though statistically not significant, effect for unconscious thought, a meta-analysis comprising a total of 17 experiments was conducted. It suggests that there is little evidence for an advantage to normative decision making using unconscious thought. However, a discussion of potential moderators shows that further study would help to identify situations in which unconscious thought is truly helpful and those in which it is not.

Research has shown that people perceive themselves as less biased than others, and as better than average in many favorable characteristics. We suggest that these types of biased perceptions regarding intentions and behavior of others may directly affect people’s decisions. In the current research we focus on possible influences in the context of helping behavior. In four experiments we found that, people believe that others, compared to themselves, are less inclined to help and cooperate, are less aware of the number of bystanders and more influenced by the “proportion dominance” bias and by the “identifiable victim effect.” We demonstrate that these perceptions are naïve and unrealistic by showing that decisions from both self and others’ perspectives are equally biased. Finally, we show how the perspective from which a decision is made (self vs. others) may affect private as well as public decisions in ways that might not be in the best interest of the decision maker and the public.

Auctions, normally considered as devices facilitating trade, also provide a way to probe mechanisms governing one’s valuation of some good or action. One of the most intriguing phenomena in auction behavior is the winner’s curse — the strong tendency of participants to bid more than rational agent theory prescribes, often at a significant loss. The prevailing explanation suggests that humans have limited cognitive abilities that make estimating the correct bid difficult, if not impossible. Using a series of auction structures, we found that bidding approaches rational agent predictions when participants compete against a computer. However, the winner’s curse appears when participants compete against other humans, even when cognitive demands for the correct bidding strategy are removed. These results suggest the humans assign significant future value to victories over human but not over computer opponents even though such victories may incur immediate losses, and that this valuation anomaly is the origin of apparently irrational behavior.

Three experiments demonstrate how the processing of negations is contingent on the evaluation context in which the negative information is presented. In addition, the strategy used to process the negations induced different affective reactions toward the stimuli, leading to inconsistency of preference. Participants were presented with stimuli described by either stating the presence of positive features (explicitly positive alternative) or negating the presence of negative features (non-negative alternative). Alternatives were presented for either joint (JE) or separate evaluation (SE). Experiment 1 showed that the non-negative stimuli were judged less attractive than the positive ones in JE but not in SE. Experiment 2 revealed that the non-negative stimuli induced a less clear and less positive feeling when they were paired with explicitly positive stimuli rather than evaluated separately. Non-negative options were also found less easy to judge than the positive ones in JE but not in SE. Finally, Experiment 3 showed that people process negations using two different models depending on the evaluation mode. Through a memory task, we found that in JE people process the non-negative attributes as negations of negative features, whereas in SE they directly process the non-negative attributes as positive features.

Previous tests of cumulative prospect theory (CPT) and of the priority heuristic (PH) found evidence contradicting these two models of risky decision making. However, those tests were criticized because they had characteristics that might “trigger” use of other heuristics. This paper presents new tests that avoid those characteristics. Expected values of the gambles are nearly equal in each choice. In addition, if a person followed expected value (EV), expected utility (EU), CPT, or PH in these tests, she would shift her preferences in the same direction as shifts in EV or EU. In contrast, the transfer of attention exchange model (TAX) and a similarity model predict that people will reverse preferences in the opposite direction. Results contradict the PH, even when PH is modified to include a preliminary similarity evaluation using the PH parameters. New tests of probability-consequence interaction were also conducted. Strong interactions were observed, contrary to PH. These results add to the growing bodies of evidence showing that neither CPT nor PH is an accurate description of risky decision making.

The authors review their own empirical work inspired by the adaptive toolbox metaphor. The review examines factors influencing strategy selection and execution in multi-attribute inference tasks (e.g., information costs, time pressure, memory retrieval, dynamic environments, stimulus formats, intelligence). An emergent theme is the re-evaluation of contingency model claims about the elevated cognitive costs of compensatory in comparison with non-compensatory strategies. Contrary to common assertions about the impact of cognitive complexity, the empirical data suggest that manipulated variables exert their influence at the meta-level of deciding how to decide (i.e., which strategy to select) rather than at the level of strategy execution. An alternative conceptualisation of strategy selection, namely threshold adjustment in an evidence accumulation model, is also discussed and the difficulty in distinguishing empirically between these metaphors is acknowledged.

This paper examines how observing other people’s behavior affects risk taking in repeated decision tasks. In Study 1, 100 participants performed experience-based decision tasks either alone or in pairs, with the two members being exposed to each others’ choices and outcomes. The tasks involved either equiprobable gains and losses or frequent small gains and rare large losses. The results indicated that, in both risk types, the social exposure increased the proportion of risky selection, but its effect was stronger in the rare-loss condition. In Study 2 the rare-loss task was administered to 32 study participants, with a target individual observing the choices of a paired individual. The results showed that observing others, rather than being observed, led to the pattern of increased risk taking. The findings of the two studies indicate the importance of distinguishing different types of risky situations and shed light on contradictory findings in the literature.

We conducted an analysis of the 13-item Maximization Scale (Schwartz et al., 2002) with the goal of establishing its factor structure, reliability and validity. We also investigated the psychometric properties of several proposed refined versions of the scale. Four sets of analyses are reported. The first analysis confirms the 3-part factor structure of the scale and assesses its reliability. The second analysis identifies those items that do not perform well on the basis of internal, external, and judgmental criteria, and develops three shorter versions of the scale. In the third analysis, the three refined versions of the scale are cross-validated to confirm dimensionality, reliability, and validity. The fourth analysis uses an experiment in an investment decision making context to assess the reliability and nomological validity of the refined scales. These analyses lead us to conclude that a shorter, 6-item Maximization Scale performs best and should be used by future researchers. It is hoped that clarification of the conceptual underpinnings of the maximization construct and development of a refined scale will enhance its use among researchers across several of the social science disciplines.

People tend to overestimate emotional responses to future events. This study examined whether such affective forecasting errors occur for feelings of regret, as measured by self-report and subsequent decision-making. Some participants played a pricing game and lost by a narrow or wide margin, while others were asked to imagine losing by such margins. Participants who experienced a narrow loss reported more regret than those who imagined a narrow loss. Furthermore, those experiencing a narrow loss behaved more cautiously in a subsequent gambling task. Thus, the study provides self-report and behavioral evidence for a reversal of the affective forecasting phenomenon for feelings of regret.

A four-fold classification of emotions with respect to their functions in decision making is proposed. It is argued that emotions are not homogenous concerning their role in decision making, but that four distinct functions can be distinguished concerning emotional phenomena. One function is to provide information about pleasure and pain for preference construction, a second function is to enable rapid choices under time pressure, a third function is to focus attention on relevant aspects of a decision problem, and a fourth function is to generate commitment concerning morally and socially significant decisions. The pertinent literature on the relationship between emotion and decision making is reviewed, and it is concluded that most approaches fit into the proposed framework. We argue that a precise conceptualization of emotional phenomena is required to advance our understanding of the complex role of emotions in decision making.

Five experiments addressed a controversy in the probability judgment literature that centers on the efficacy of framing probabilities as frequencies. The natural frequency view predicts that frequency formats attenuate errors, while the nested-sets view predicts that highlighting the set-subset structure of the problem reduces error, regardless of problem format. This study tested these predictions using a conjunction task. Previous studies reporting that frequency formats reduced conjunction errors confounded reference class with problem format. After controlling this confound, the present study’s findings show that conjunction errors can be reduced using either a probability or a frequency format, that frequency effects depend upon the presence of a reference class, and that frequency formats do not promote better statistical reasoning than probability formats.

Measuring reaction times to number comparisons is thought to reveal a processing stage in elementary numerical cognition linked to internal, imprecise representations of number magnitudes. These intuitive representations of the mental number line have been demonstrated across species and human development but have been little explored in decision making. This paper develops and tests hypotheses about the influence of such evolutionarily ancient, intuitive numbers on human decisions. We demonstrate that individuals with more precise mental-number-line representations are higher in numeracy (number skills) consistent with previous research with children. Individuals with more precise representations (compared to those with less precise representations) also were more likely to choose larger, later amounts over smaller, immediate amounts, particularly with a larger proportional difference between the two monetary outcomes. In addition, they were more likely to choose an option with a larger proportional but smaller absolute difference compared to those with less precise representations. These results are consistent with intuitive number representations underlying: a) perceived differences between numbers, b) the extent to which proportional differences are weighed in decisions, and, ultimately, c) the valuation of decision options. Human decision processes involving numbers important to health and financial matters may be rooted in elementary, biological processes shared with other species.

Theoretical equivalence exists among various auction mechanisms, specifically the Second-Price-Auction (SPA), a competitive environment, and the BDM mechanism, a non-competitive environment. Yet, empirical studies suggest that behavior in these mechanisms may diverge. Our experimental study examines the WTP and the WTA of individuals by analyzing buying and selling bidding patterns both for a physical product (mugs) and for two types of lotteries (regular lotteries and extreme lotteries) in these two auctions mechanism: SPA and BDM. We found that the WTP in the SPA is higher than the WTP in the BDM for mugs and for regular lotteries, while the mechanisms do not differ significantly for extreme lotteries. In addition, the WTA in the SPA is lower than in the BDM for regular lotteries only. These results indicate that the WTP and WTA, as well as the WTA-WTP gap, tend to differ in the SPA and in the BDM as a result of the interaction between the competitiveness effect and other psychological effects on bidding patterns for riskless and risky assets. In addition, the current study suggests that the competitiveness effect depends not only on the type of mechanism (SPA), but also on the type of item (physical assets or lotteries) and the type of lottery. In addition, the influence of the competitiveness effect may vary between buying and selling positions.

We compare and critique two measures of risk perception. We suggest that a single question — “How risky is the situation?” — captures the concept of risk perception more accurately than the multiple-item measure used by Sitkin and Weingart (1995). In fact, this latter measure inadvertently captures notions of attractiveness or expected return, rather than risk perception. We further propose that the error underlying the construction of Sitkin and Weingart’s measure is explained in terms of a top-down model of risk perception, in which perceived risk and perceived return are consequences, rather than determinants, of attractiveness. Two studies compare the validity of the two alternative measures.

We present a motivational account of the impact of emotion on decision making, termed the feeling-is-for-doing approach. We first describe the psychology of emotion and argue for a need to be specific when studying emotion's impact on decision making. Next we describe what our approach entails and how it relates emotion, via motivation to behavior. Then we offer two illustrations of our own research that provide support for two important elements in our reasoning. We end with specifying four criteria that we consider to be important when studying how feeling guides our everyday doing.