High-value decisions are fast and accurate, inconsistent with diminishing value sensitivity

Blair R. K. Shevlin, Stephanie M. Smith, Jan Hausfeld and Ian Krajbich
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Blair R. K. Shevlin: a Department of Psychology, The Ohio State University, Columbus, OH 43210;
Stephanie M. Smith: a Department of Psychology, The Ohio State University, Columbus, OH 43210;; b Anderson School of Management, University of California, Los Angeles, CA 90095;
Ian Krajbich: a Department of Psychology, The Ohio State University, Columbus, OH 43210;; f Department of Economics, The Ohio State University, Columbus, OH 43210

Proceedings of the National Academy of Sciences, 2022, vol. 119, issue 6, e2101508119

Abstract: What information about economic value is incorporated into decision-makers’ choices? Across the decision sciences, several prominent models ignore average value, assuming that only value differences are incorporated into the decision-making process, while others assume diminishing sensitivity to value, suggesting that it should be more difficult to choose between high-value options. Other models suggest that high-value decisions should, if anything, be treated as less important (holding value difference constant). Across three experiments with very different types of choices (food, art, and learned stimuli), we find violations of these predictions. Contrary to expectations, the presence of high-value options makes decisions easier while also inducing more effort to get them right.

Keywords: drift diffusion model; decision-making; neuroeconomics; overall value; response time (search for similar items in EconPapers)
Date: 2022
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