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

Author

Listed:
  • 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;)

  • Jan Hausfeld

    (c CREED, Amsterdam School of Economics, University of Amsterdam, 1018 WB Amsterdam, The Netherlands;; d Thurgau Institute of Economics, University of Konstanz, 78457 Konstanz, Germany;; e Department of Social Neuroscience and Social Psychology, University of Bern, 3012 Bern, Switzerland;)

  • Ian Krajbich

    (a Department of Psychology, The Ohio State University, Columbus, OH 43210;; f Department of Economics, The Ohio State University, Columbus, OH 43210)

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.

Suggested Citation

  • Blair R. K. Shevlin & Stephanie M. Smith & Jan Hausfeld & Ian Krajbich, 2022. "High-value decisions are fast and accurate, inconsistent with diminishing value sensitivity," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 119(6), pages 2101508119-, February.
    • Handle: RePEc:nas:journl:v:119:y:2022:p:e2101508119
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    Cited by:

    1. Mondal, Supratik & Traczyk, Jakub, 2023. "Conditionality of adaptiveness: Investigating the relationship between numeracy and adaptive behavior," Journal of Economic Psychology, Elsevier, vol. 96(C).
    2. Sean, Duffy & John, Smith, 2023. "Stochastic choice and imperfect judgments of line lengths: What is hiding in the noise?," MPRA Paper 116382, University Library of Munich, Germany.

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