Understanding Risky Choices: The Difference Between Described and Experienced Decisions
Author Information
Author(s): Ludvig Elliot A., Spetch Marcia L.
Primary Institution: Princeton University
Hypothesis
Does the description-experience gap in risky choice apply to equally probable outcomes?
Conclusion
The study found that people are more risk-seeking for gains and more risk-averse for losses when making decisions based on experience compared to when they are based on descriptions.
Supporting Evidence
- Participants displayed higher reflection scores for described trials than for experienced trials.
- The reversal of the reflection effect became more established as participants learned the relationships between cues and rewards.
- The study used a within-subject design to show differences between experience and description in the same participants.
Takeaway
When people make choices based on what they've experienced, they often take more risks with gains and avoid risks with losses, unlike when they just hear about the choices.
Methodology
Two experiments were conducted where participants made choices based on either described or experienced outcomes, with immediate feedback provided in the experience condition.
Potential Biases
Potential biases may arise from emotional states during decision-making processes.
Limitations
The results may not generalize to other decision-making contexts that involve fewer exposures to potential outcomes.
Participant Demographics
Participants were University of Alberta undergraduate students, with a mean age of 20, consisting of 35 females and 21 males.
Statistical Information
P-Value
p<0.001
Statistical Significance
p<0.05
Digital Object Identifier (DOI)
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