Tracing risky decisions for oneself and others: The role of intuition and deliberation

Kinga Barrafrem and Jan Hausfeld

Journal of Economic Psychology, 2020, vol. 77, issue C

Abstract: This study contributes to the understanding of how individuals make choices for themselves and on behalf of others in a risky environment. In a laboratory eye-tracking experiment, we investigate whether risk preferences, decision error, and information processing differ between decisions made for oneself and on behalf of others. While we find no differences in risk preferences when deciding for oneself or for someone else, individuals have a greater decision error when deciding for others. Process data partly explains these differences. Individuals spend less time, have less fixations, and inspect less information when deciding for others. We detect similar processing patterns when comparing intuitive and deliberative decision making. We argue that the processing of decisions for oneself is more effortful and involves more extensive deliberation which, in turn, is related to less decision errors.

Keywords: Decision making for others; Risk preferences; Decision noise; Dual-process theory; Eye-tracking (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:77:y:2020:i:c:s0167487019303654

DOI: 10.1016/j.joep.2019.102188

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