Emotions can shape decision processes by altering valuation signals, risk perception, and strategic orientation. Although multiple theories posit a role for affective processes in mediating the influence of frames on decision making, empirical studies have yet to demonstrate that manipulated affect modulates framing phenomena. The present study asked whether induced affective states alter gambling propensity and the influence of frames on decision making. In a between-subjects design, we induced mood (happy, sad, or neutral) in subjects (N=91) via films that were interleaved with the framing task. Happy mood induction increased gambling and apparently accentuated framing effects compared to sad mood induction, although the effect on framing could have resulted from the fact that the increased tendency to gamble made the framing measure more sensitive. Happy mood induction increased gambling, but not framing magnitude, compared to neutral mood induction. Subjects experiencing a sad mood induction did not exhibit behavioral differences from those experiencing a neutral mood. For those subjects who experienced the happy mood induction, both gambling propensity and framing magnitude were positively correlated with the magnitude of the change in their mood valence. We discuss the broader implications of mood effects on real-world economic decisions.

Svenson (2011) showed that choices of one of two alternative productivity increases to save production resources (e.g., man-months) were biased. Judgments of resource savings following a speed increase from a low production speed line were underestimated and following an increase of a high production speed line overestimated. The objective formula for computing savings includes differences between inverse speeds and this is intuitively very problematic for most people. The purpose of the present studies was to explore ways of ameliorating or eliminating the bias. Study 1 was a control study asking participants to increase the production speed of one production line to save the same amount of production resources (man-months) as was saved by a speed increase in a reference line. The increases judged to match the reference alternatives showed the same bias as in the earlier research on choices. In Study 2 the same task and problems were used as in Study 1, but the participants were asked first to judge the resource saving of the reference alternative in a pair of alternatives before they proceeded to the matching task. This weakened the average bias only slightly. In Study 3, the participants were asked to judge the resources saved from each of two successive increases of the same single production line (other than those of the matching task) before they continued to the matching problems. In this way a participant could realize that a second production speed increase from a higher speed (e.g., from 40 to 60 items /man-month) gives less resource savings than the same speed increase from a first lower speed (e.g., from 20 to 40 items/man-month. Following this, the judgments of the same problems as in the other studies improved and the bias decreased significantly but it did not disappear. To be able to make optimal decisions about productivity increases, people need information about the bias and/or reformulations of the problems.

It is important to understand the impact of individual differences in decision making from childhood to adulthood. This cohort-based study extends our knowledge by comparing decision making of children across the age range of 8 to 17 years and their parents. Based on prior research and theory focusing on different types of framing effects, we uncover several key differences across ages, including levels of risk taking and sensitivity to expected value differences between risky and riskless choices. Furthermore, we find that measures such as Numeracy and Surgency help explain both age-related and individual differences on our tasks, especially for decisions involving risk. We discuss the role of diverse task measures in understanding how individual difference factors affect different aspects of decision making, including the ability and effort to process numerical information and the ability to suppress affective reactions to stimulus labels.

The letter of the law is its literal meaning. Here, the spirit of the law is its perceived intention. We tested the hypothesis that violating the spirit of the law accounts for culpability above and beyond breaking the mere letter. We find that one can incur culpability even when the letter of the law is not technically broken. We examine this effect across various legal contexts and discuss the implications for future research directions.

Affective states can change how people react to measures aimed at influencing their decisions such as providing a default option. Previous research has shown that when defaults maintain the status quo positive mood increases reliance on the default and negative mood decreases it. Similarly, it has been demonstrated that positive mood enhances the preference for inaction. We extend this research by investigating how mood states influence reliance on the default if the default leads to a change, thus pitting preference for status quo against a preference for inaction. Specifically, we tested in an online study how happiness and sadness influenced reliance on two types of default (1) a default maintaining status quo and (2) a default inducing change. Our results suggest that the effect of emotions depends on the type of default: people in a happy mood were more likely than sad people to follow a default when it maintained status quo but less likely to follow a default when it introduced change. These results are in line with mood maintenance theory.

I report a new judgment task designed to investigate the subjective weights allotted to experience and description when integrating information from the two sources. Subjects estimated the percentage of red balls in a bag containing red and blue balls based on two samples from the bag. They experienced one sample by observing a sequence of draws and received a description of the other sample in terms of summary statistics.

The results of two experiments show that judgments were more sensitive to the experienced sample compared to the described one for most subjects, although others showed the opposite bias. The bias toward experience varied as a function of the presentation order of the two samples in Experiment 1 and the presentation format of the description in Experiment 2.

The integration of description and experience exemplifies tasks that require integration of information obtained from different sources and in different formats. Informed by the findings reported in this study, I identify some directions for future research on human information integration.

Maximizers attempt to find the best solution in decision-making, while satisficers feel comfortable with a good enough solution. Recent results pointed out some critical aspects of this decision-making approach and some concerns about its measurement and dimensional structure. In addition to the analysis of these aspects, we tested the possible mediational role of regret in this psychological process. The Maximization Inventory (MI; satisficing, decision difficulty, and alternative search), regret, and Satisfaction with Life Scale (SWLS) were translated and adapted to Spanish in order to answer these issues with a Chilean sample. Validity and reliability analysis of the MI reports that only two dimensions of the MI have enough dimensional support (decision difficulty, alternative search). The tested structural model shows good fit of partial mediation effect of regret between decision difficulty and SWLS. At the same time, alternative search has a positive relation with SWLS. These results suggest that Regret becomes crucial for prescribing behavior to decision makers.