publication . Article . 2018

Influence of an Intermediate Option on the Description-Experience Gap and Information Search.

Shoubhik Debnath; Neha Sharma; Varun Dutt;
Open Access
  • Published: 01 Mar 2018 Journal: Frontiers in Psychology, volume 9 (eissn: 1664-1078, Copyright policy)
  • Publisher: Frontiers Media SA
Abstract
Research shows that people tend to overweight small probabilities in description and underweight them in experience, thereby leading to a different pattern of choices between description and experience; a phenomenon known as the Description-Experience (DE) gap. However, little is known on how the addition of an intermediate option and contextual framing influences the DE gap and people’s search strategies. This paper tests the effects of an intermediate option and contextual framing on the DE gap and people’s search strategies, where problems require search for information before a consequential choice. In the first experiment, 120 participants made choice decis...
Subjects
free text keywords: General Psychology, Original Research, description, experience, investment, intermediate option, Natural Mean Heuristic, rare outcomes, common outcomes, BF1-990, Psychology, Heuristic, Description-experience gap, Phenomenon, Framing (construction), Microeconomics
28 references, page 1 of 2

Abdellaoui M.L’Haridon O.Paraschiv C. (2011). Experienced vs. described uncertainty: Do we need two prospect theory specifications? Manag. Sci. 57 1879–1895. 10.1287/mnsc.1110.1368 [OpenAIRE] [DOI]

Berman J. (2014). The Three Essential Warren Buffett Quotes to Live by [Internet]. Forbes. Available at: https://www.forbes.com/sites/jamesberman/2014/04/20/the-three-essential-warren-buffett-quotes-to-live-by/amp [accessed February 20 2017].

Dutt V.Gonzalez C. (2012). The role of inertia in modeling decisions from experience with instance-based learning. Front. Psychol. 3:177. 10.3389/fpsyg.2012.00177 22685443 [OpenAIRE] [PubMed] [DOI]

Erev I.Ert E.Roth A. E.Haruvy E.Herzog S. M.Hau R. (2010). A choice prediction competition: choices from experience and from description. J. Behav. Decis. Mak. 23 15–47. 10.1002/bdm.683 [OpenAIRE] [DOI]

Frey R.Mata R.Hertwig R. (2015). The role of cognitive abilities in decisions from experience: age differences emerge as a function of choice set size. Cognition 142 60–80. 10.1016/j.cognition.2015.05.004 26022497 [OpenAIRE] [PubMed] [DOI]

Gonzalez C.Dutt V. (2011). Instance-based learning: integrating sampling and repeated decisions from experience. Psychol. Rev. 118 523–551. 10.1037/a0024558 21806307 [OpenAIRE] [PubMed] [DOI]

Gonzalez C.Dutt V. (2012). Refuting data aggregation arguments and how the instance-based learning model stands criticism: a reply to Hills and Hertwig (2012). Psychol. Rev. 119 893–898. 10.1037/a0029445 [OpenAIRE] [DOI]

Gottlieb D. A.Weiss T.Chapman G. B. (2007). The format in which uncertainty information is presented affects decision biases. Psychol. Sci. 18 240–246. 10.1111/j.1467-9280.2007.01883.x 17444921 [OpenAIRE] [PubMed] [DOI]

Hart S. G.Staveland L. E. (1988). Development of NASA-TLX (Task Load Index): results of empirical and theoretical research. Adv. Psychol. 52 139–183. 10.1016/S0166-4115(08)62386-9 [OpenAIRE] [DOI]

He H.Wu K. (2016). Choice set, relative income, and inequity aversion: an experimental investigation. J. Econ. Psychol. 54 177–193. 10.1016/j.joep.2016.04.002 [OpenAIRE] [DOI]

Hertwig R. (2012). The psychology and rationality of decisions from experience. Synthese 187 269–292. 10.1007/s11229-011-0024-4 [OpenAIRE] [DOI]

Hertwig R.Barron G.Weber E. U.Erev I. (2004). Decisions from experience and the effect of rare events in risky choice. Psychol. Sci. 15 534–539. 10.1111/j.0956-7976.2004.00715.x 15270998 [OpenAIRE] [PubMed] [DOI]

Hertwig R.Erev I. (2009). The description-experience gap in risky choice. Trends Cogn. Sci. 13 517–523. 10.1016/j.tics.2009.09.004 19836292 [OpenAIRE] [PubMed] [DOI]

Hertwig R.Pleskac T. J. (2010). Decisions from experience: Why small samples? Cognition 115 225–237. 10.1016/j.cognition.2009.12.009 20092816 [OpenAIRE] [PubMed] [DOI]

Hilbig B. E.Glöckner A. (2011). Yes, they can! Appropriate weighting of small probabilities as a function of information acquisition. Acta Psychol. 138 390–396. 10.1016/j.actpsy.2011.09.005 21974869 [OpenAIRE] [PubMed] [DOI]

28 references, page 1 of 2
Abstract
Research shows that people tend to overweight small probabilities in description and underweight them in experience, thereby leading to a different pattern of choices between description and experience; a phenomenon known as the Description-Experience (DE) gap. However, little is known on how the addition of an intermediate option and contextual framing influences the DE gap and people’s search strategies. This paper tests the effects of an intermediate option and contextual framing on the DE gap and people’s search strategies, where problems require search for information before a consequential choice. In the first experiment, 120 participants made choice decis...
Subjects
free text keywords: General Psychology, Original Research, description, experience, investment, intermediate option, Natural Mean Heuristic, rare outcomes, common outcomes, BF1-990, Psychology, Heuristic, Description-experience gap, Phenomenon, Framing (construction), Microeconomics
28 references, page 1 of 2

Abdellaoui M.L’Haridon O.Paraschiv C. (2011). Experienced vs. described uncertainty: Do we need two prospect theory specifications? Manag. Sci. 57 1879–1895. 10.1287/mnsc.1110.1368 [OpenAIRE] [DOI]

Berman J. (2014). The Three Essential Warren Buffett Quotes to Live by [Internet]. Forbes. Available at: https://www.forbes.com/sites/jamesberman/2014/04/20/the-three-essential-warren-buffett-quotes-to-live-by/amp [accessed February 20 2017].

Dutt V.Gonzalez C. (2012). The role of inertia in modeling decisions from experience with instance-based learning. Front. Psychol. 3:177. 10.3389/fpsyg.2012.00177 22685443 [OpenAIRE] [PubMed] [DOI]

Erev I.Ert E.Roth A. E.Haruvy E.Herzog S. M.Hau R. (2010). A choice prediction competition: choices from experience and from description. J. Behav. Decis. Mak. 23 15–47. 10.1002/bdm.683 [OpenAIRE] [DOI]

Frey R.Mata R.Hertwig R. (2015). The role of cognitive abilities in decisions from experience: age differences emerge as a function of choice set size. Cognition 142 60–80. 10.1016/j.cognition.2015.05.004 26022497 [OpenAIRE] [PubMed] [DOI]

Gonzalez C.Dutt V. (2011). Instance-based learning: integrating sampling and repeated decisions from experience. Psychol. Rev. 118 523–551. 10.1037/a0024558 21806307 [OpenAIRE] [PubMed] [DOI]

Gonzalez C.Dutt V. (2012). Refuting data aggregation arguments and how the instance-based learning model stands criticism: a reply to Hills and Hertwig (2012). Psychol. Rev. 119 893–898. 10.1037/a0029445 [OpenAIRE] [DOI]

Gottlieb D. A.Weiss T.Chapman G. B. (2007). The format in which uncertainty information is presented affects decision biases. Psychol. Sci. 18 240–246. 10.1111/j.1467-9280.2007.01883.x 17444921 [OpenAIRE] [PubMed] [DOI]

Hart S. G.Staveland L. E. (1988). Development of NASA-TLX (Task Load Index): results of empirical and theoretical research. Adv. Psychol. 52 139–183. 10.1016/S0166-4115(08)62386-9 [OpenAIRE] [DOI]

He H.Wu K. (2016). Choice set, relative income, and inequity aversion: an experimental investigation. J. Econ. Psychol. 54 177–193. 10.1016/j.joep.2016.04.002 [OpenAIRE] [DOI]

Hertwig R. (2012). The psychology and rationality of decisions from experience. Synthese 187 269–292. 10.1007/s11229-011-0024-4 [OpenAIRE] [DOI]

Hertwig R.Barron G.Weber E. U.Erev I. (2004). Decisions from experience and the effect of rare events in risky choice. Psychol. Sci. 15 534–539. 10.1111/j.0956-7976.2004.00715.x 15270998 [OpenAIRE] [PubMed] [DOI]

Hertwig R.Erev I. (2009). The description-experience gap in risky choice. Trends Cogn. Sci. 13 517–523. 10.1016/j.tics.2009.09.004 19836292 [OpenAIRE] [PubMed] [DOI]

Hertwig R.Pleskac T. J. (2010). Decisions from experience: Why small samples? Cognition 115 225–237. 10.1016/j.cognition.2009.12.009 20092816 [OpenAIRE] [PubMed] [DOI]

Hilbig B. E.Glöckner A. (2011). Yes, they can! Appropriate weighting of small probabilities as a function of information acquisition. Acta Psychol. 138 390–396. 10.1016/j.actpsy.2011.09.005 21974869 [OpenAIRE] [PubMed] [DOI]

28 references, page 1 of 2
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