Decision making under stress: mild hypoxia leads to increased risk-taking.

People tend to take more risks under stressful conditions. In the present study, we examined the effect of mild hypoxia, an unconscious and ongoing stressor, on decisions under uncertainty where probabilities are unknown. Participants completed the Balloon Analogue Risk Taking task (BART) in both a normoxic (20.9% oxygen concentration) and a mildly hypoxic (14.1% oxygen concentration) environment. The results indicate that people take more risks in a mildly hypoxic than in a normoxic environment. Despite inducing significant changes in physiological parameters, the oxygen manipulation remained undetected by participants allowing us to rule out a cognitive appraisal account for the effect. Moreover, the stressor was ongoing allowing us to discount possible post-stress reaction explanations. The current findings extend previous ones about the effect of stress on risk-taking and demonstrate that undetected stressors can increase risk-taking in decision making under ambiguity.

Category-bounded emotional enhancement: spillover effects in the valuation of public goods.

We examined whether enhancing (vs. not enhancing) the emotionality of a referent public good influences the subsequent valuation of a target public good. We predicted that it would and that the directionality of its impact would depend on a fundamental cognitive process - categorisation. If the target and referent goods belong to the same domain, we expected that the effect on the target would be in the same direction as the emotional enhancement of the referent (assimilation effect). However, if the target and referent goods belong to different domains, we expected that the effect on the target would be either negligible or in the opposite direction to that of the emotional enhancement of the referent (null or contrast effect). In Experiment 1 we examined the impact of emotionally enhancing a referent public good on feelings towards a target public good, whereas in Experiment 2 on the willingness to contribute towards a target public good. The results support the predicted interaction, which was driven by an assimilation effect for same-domain goods and a null effect for different-domain goods. In doing so, the present findings highlight the interplay between cognition and emotion in the valuation of public goods. We discuss theoretical and practical implications.

Reduced Risk-Taking After Prior Losses in Pathological Gamblers Under Treatment and Healthy Control Group but not in Problem Gamblers.

A group of pathological gamblers and a group of problem gamblers (i.e., gamblers at risk of becoming pathological) were compared to healthy controls on their risk-taking propensity after prior losses. Each participant played both the Balloon Analogue Risk Taking task (BART) and a modified version of the same task, where individuals face five repeated predetermined early losses at the onset of the game. No significant difference in risk-taking was found between groups on the standard BART task, while significant differences emerged when comparing behaviors in the two tasks: both pathological gamblers and controls reduced their risk-taking tendency after prior losses in the modified BART compared to the standard BART, whereas problem gamblers showed no reduction in risk-taking after prior losses. We interpret these results as a sign of a reduced sensitivity to negative feedback in problem gamblers which might contribute to explain their loss-chasing tendency.

Loss aversion and hypoxia: less loss aversion in oxygen-depleted environment.

Hypoxia, the deprivation of adequate oxygen supply, constitutes a direct threat to survival by disrupting cardiovascular or respiratory homeostasis and eliciting a respiratory distress. Although hypoxia has been shown to increase brain vulnerability and impair basic cognitive functions, only one study has examined its effect on decision-making. The present study examined the effect of mild hypoxia on individual's loss aversion, that is, the tendency to be more affected by losses than equal sized gains. A sample of 26 participants were asked to either accept or reject a series of mixed gambles once in an oxygen-depleted environment (14.1% oxygen concentration) and once in a normoxic environment (20.9% oxygen concentration). Each gamble involved a 50-50 chance of winning or losing specified amounts of money. Mild hypoxia decreased loss aversion: on average in the normoxic condition participants accepted gambles if the gain was at least 2.4 times as large as the loss, whereas in the oxygen-depleted condition participants accepted gambles if the gain was at least 1.7 times as large as the loss. Mild hypoxia may push individuals to be less cautious in daily decisions that involve a trade-off between a gain and a loss.

Reappraising the ultimatum: an fMRI study of emotion regulation and decision making.

Emotion regulation strategies provide a means by which to modulate our social behavior. In this study, we investigated the effect of using reappraisal to both up- and downregulate social decision making. After being instructed on how to use reappraisal, participants played the Ultimatum Game while undergoing functional magnetic resonance imaging and applied the strategies of upregulation (reappraising the proposer's intentions as more negative), down-regulation (reappraising the proposer's intentions as less negative), as well as a baseline "look" condition. As hypothesized, when reappraising, decision acceptance rates were altered, with a greater number of unfair offers accepted while down-regulating and a greater number of unfair offers rejected while upregulating, both relative to the baseline condition. At the neural level, during reappraisal, significant activations were observed in the inferior and middle frontal gyrus (MFG), in addition to the medial prefrontal cortex and cingulate gyrus for unfair offers only. Regulated decisions involved left inferior frontal gyrus for upregulation and MFG for down-regulation strategies, respectively. Importantly, the effects of emotion modulation were evident in posterior insula, with less activation for down-regulation and more activation for upregulation in these areas. Notably, we show for the first time that top-down strategies such as reappraisal strongly affect our socioeconomic decisions.

Anxious ultimatums: how anxiety disorders affect socioeconomic behaviour.

Although the role of emotion in socioeconomic decision making is increasingly recognised, the impact of specific emotional disorders, such as anxiety disorders, on these decisions has been surprisingly neglected. Twenty anxious patients and twenty matched controls completed a commonly used socioeconomic task (the Ultimatum Game), in which they had to accept or reject monetary offers from other players. Anxious patients accepted significantly more unfair offers than controls. We discuss the implications of these findings in light of recent models of anxiety, in particular the importance of interpersonal factors and assertiveness in an integrated model of decision making. Finally, we were able to show that pharmacological serotonin used to treat anxious symptomatology tended to normalise decision making, further confirming and extending the role of serotonin in co-operation, prosocial behaviour, and social decision making. These results show, for the first time, a different pattern of socioeconomic behaviour in anxiety disordered patients, in addition to the known memory, attentional and emotional biases that are part of this pathological condition.

Assessing Italian household preferences for waste sorting systems: The role of environmental awareness, socioeconomic characteristics, and local contexts.

Efficient Waste Management Systems (WMS) depend on citizens' willingness to sort waste and to cooperate for its improved provision. Thus, it is essential to understand what attributes individuals value the most and what drives WMS preference heterogeneity. In this paper, we investigate how individuals evaluate WMS attributes (e.g., the number of waste sorting categories, the introduction of textile sorting, and the frequency of collection per week) and how the local contexts, socioeconomics, and environmental values shape their preferences. For this purpose, we conducted a discrete choice experiment on a sample representative of the Italian population interviewed through an online panel survey. We collected information on individual's preferences for WMS attributes, environmental awareness, and socioeconomic characteristics. We analyzed the data using hybrid mixed choice models, which allowed us to integrate environmental awareness values into willingness to pay estimations. We found that individuals are willing to pay for waste sorting, even if this implies more effort on their part and increased storage space. In addition, we found that the extent to which individuals support WMS improvements strongly depends on their environmental values, experiences (which are shaped by their local context), and socioeconomic factors. Our results suggest that to increase recycling rates and citizen satisfaction, there is a need for context-specific WMS designs that acknowledge the observed heterogeneity of preferences.

Does cognitive reflection predict attentional control in visual tasks?

The cognitive reflection test (CRT) measures the ability to suppress an intuitive, but incorrect, answer that easily comes to mind. The relationship between the CRT and different cognitive biases has been widely studied. However, whether cognitive reflection is related to attentional control is less well studied. The aim of this paper is to investigate whether the inhibitory component of the CRT, measured by the number of non-intuitive answers of the CRT (Inhibitory Control Score), is related to the control of visual attention in visual tasks that involve overriding a bias in what to attend: an anti-saccade task and a visual search task. To test this possibility, we analyzed whether the CRT-Inhibitory Control Score (CRT-ICS) predicted attention allocation in each task. We compared the relationship between the CRT-ICS to two other potential predictors of attentional control: numeracy and visual working memory (VWM). Participants who scored lower on the CRT-ICS made more errors in the "look-away" trials in the anti-saccade task. Participants who scored higher on the CRT-ICS looked more often towards more informative color subsets in the visual search task. However, when controlling for numeracy and visual working memory, CRT-ICS scores were only related to the control of visual attention in the anti-saccade task.

Hypoxia and risk preferences: Mild hypoxia impacts choices for low-probability high-payoff bets.

Mild degrees of hypoxia are known to exert a detrimental effect on cognitive functions. In a lab study, we assessed the effect of mild hypoxia on risk-taking behavior. Participants (N = 25) were presented with pairs of bets of equal expected monetary value, one having a higher probability of winning/losing a lower payoff (safer bet) and one having a lower probability of winning/losing a higher payoff (riskier bet). We systematically varied the ratio of the probabilities (and corresponding payoffs) of the two bets and examined how this affected participants' choice between them. Following a familiarization session, participants performed the task twice: once in a normoxic environment (20.9% oxygen concentration) and once in a mildly hypoxic environment (14.1% oxygen concentration). Participants were not told and could not guess which environment they were in. We found a higher preference for the riskier bet in the mild hypoxic than normoxic environment but only in the loss domain. Furthermore, as the probability ratio increased, mild hypoxia increased the preference for the riskier bet in the domain of losses but decreased it for gains. The present findings support that mild hypoxia promotes riskier choices in the loss domain and provide new insights into the impact of mild hypoxia in moderating the effect of probability ratio on risky choices.

Worry, Perceived Threat and Media Communication as Predictors of Self-Protective Behaviors During the COVID-19 Outbreak in Europe.

Efforts to contain the spread of the coronavirus emphasize the central role of citizens' compliance with self-protective behaviors. Understanding the processes underlying the decision to self-protect is, therefore, essential for effective risk communication during the COVID-19 pandemic. In the present study, we investigate the determinants of perceived threat and engagement in self-protective measures in the United Kingdom, Italy, and Austria during the first wave of the pandemic. The type of disease (coronavirus vs. seasonal flu) and the type of numerical information regarding the disease (number of recovered vs. number of dead) were manipulated. Participants' cognitive and emotional risk assessment as well as self-reported engagement in protective behaviors were measured. Results show that worry was the best predictor of perceived threat in all countries. Moreover, a path analysis revealed that worry and perceived threat serially mediated the effect of type of disease on engagement in self-protective behaviors. The numerical framing manipulation did not significantly impact behavior but had a direct effect on worry and an indirect effect on perceived threat. These results are in line with theoretical accounts that identify emotions as a central determinant for risk perception. Moreover, our findings also suggest that effective risk communication during the COVID-19 pandemic should not stress comparisons to other, well-known viral diseases, as this can ultimately reduce self-protective behaviors.

Normatively Irrelevant Affective Cues Affect Risk-Taking under Uncertainty: Insights from the Iowa Gambling Task (IGT), Skin Conductance Response, and Heart Rate Variability.

Being able to distinguish between safe and risky options is paramount in making functional choices. However, deliberate manipulation of decision-makers emotions can lead to risky behaviors. This study aims at understanding how affective reactions driven by normatively irrelevant affective cues can interfere with risk-taking. Good and Bad decks of the Iowa Gambling Task have been manipulated to make them unpleasant through a negative auditory manipulation. Anticipatory skin conductance response (SCR) and heart rate variability (HRV) have been investigated in line with the somatic marker hypothesis. Results showed fewer selections from Good decks when they were negatively manipulated (i.e., Incongruent condition). No effect of the manipulation was detected when Bad decks were negatively manipulated (i.e., Congruent condition). Higher anticipatory SCR was associated with Bad decks in Congruent condition. Slower heart rate was found before selections from Good decks in Control and Congruent condition and from Bad decks in Incongruent condition. Differences in heart rate between Bad and Good decks were also detected in Congruent condition. Results shed light on how normatively irrelevant affective cues can interfere with risk-taking.

Expect the Worst! Expectations and Social Interactive Decision Making.

Psychological studies have demonstrated that expectations can have substantial effects on choice behavior, although the role of expectations on social decision making in particular has been relatively unexplored. To broaden our knowledge, we examined the role of expectations on decision making when interacting with new game partners and then also in a subsequent interaction with the same partners. To perform this, 38 participants played an Ultimatum Game (UG) in the role of responders and were primed to expect to play with two different groups of proposers, either those that were relatively fair (a tendency to propose an equal split-the high expectation condition) or unfair (with a history of offering unequal splits-the low expectation condition). After playing these 40 UG rounds, they then played 40 Dictator Games (DG) as allocator with the same set of partners. The results showed that expectations affect UG decisions, with a greater proportion of unfair offers rejected from the high as compared to the low expectation group, suggesting that players utilize specific expectations of social interaction as a behavioral reference point. Importantly, this was evident within subjects. Interestingly, we also demonstrated that these expectation effects carried over to the subsequent DG. Participants allocated more money to the recipients of the high expectation group as well to those who made equal offers and, in particular, when the latter were expected to behave unfairly, suggesting that people tend to forgive negative violations and appreciate and reward positive violations. Therefore, both the expectations of others' behavior and their violations play an important role in subsequent allocation decisions. Together, these two studies extend our knowledge of the role of expectations in social decision making.

Comparison of confirmation measures.

Alternative measures of confirmation or evidential support have been proposed to express the impact of ascertaining one event on the credibility of another. We report an experiment that compares the adequacy of several such measures as descriptions of confirmation judgment in a probabilistic context.

Positive Arousal Increases Individuals' Preferences for Risk.

Much is known about the effect of negative arousal on decision making, but little is known about the effect of positive arousal. In this study, we manipulated positive arousal and measured individual choices under risk using an incentivized task. Participants were randomly assigned to either a low arousal or a high arousal condition and asked to choose between pairs of two-outcome monetary lotteries with the same expected value but different risk in terms of outcome variance. The probability was set at 50% for each lottery. Participants in the high arousal group selected the riskier lottery more often and took more time to make choices than participants in the low arousal group. This finding shows that introducing a pleasant arousing cue as part of the decision context shifts an individual's preferences toward the risky economic option and away from the safer one.

The Putative Chemosignal Androstadienone Makes Women More Generous.

Putative human chemosignals have been shown to influence mood states and emotional processing, but the connection between these effects and higher-order cognitive processing is not well established. This study utilized an economic game (Dictator Game) to test whether androstadienone (AND), an odorous compound derived from testosterone, impacts on altruistic behavior. We predicted that the female participants would act more generously in the AND condition, exhibiting a significant interaction effect between gender and AND on Dictator Game contributions. We also expected that the presence of AND should increase the positive mood of the female participants, compared to a control odor condition and also compared to the mood of the male participants. The results confirm our hypotheses: for women the subliminal perception of AND led to larger monetary donations, compared to a control odor, and also increased positive mood. These effects were absent or significantly weaker in men. Our findings highlight the capacity of human putative chemosignals to influence emotions and higher cognitive processes - in particular the processes used in the context of economic decisions - in a gender-specific way.

Effect of Graph Scale on Risky Choice: Evidence from Preference and Process in Decision-Making.

We investigate the effect of graph scale on risky choices. By (de)compressing the scale, we manipulate the relative physical distance between options on a given attribute in a coordinate graphical context. In Experiment 1, the risky choice changes as a function of the scale in the graph. In Experiment 2, we show that the type of graph scale also affects decision times. In Experiment 3, we examine the graph scale effect by using real money among students who have taken statistics courses. Consequently, the scale effects still appear even when we control the variations in calculation ability and increase the gravity with which participants view the consequence of their decisions. This finding is inconsistent with descriptive invariance of preference. The theoretical implications and practical applications of the findings are discussed.

Inconsistent probability estimates of a hypothesis: the role of contrasting support.

This paper studies consistency in the judged probability of a target hypothesis in lists of mutually exclusive nonexhaustive hypotheses. Specifically, it controls the role played by the support of displayed competing hypotheses and the relatedness between the target hypothesis and its alternatives. Three experiments are reported. In all experiments, groups of people were presented with a list of mutually exclusive nonexhaustive causes of a person's death. In the first two experiments, they were asked to judge the probability of each cause as that of the person's decease. In the third experiment, people were asked for a frequency estimation task. Target causes were presented in all lists. Several other alternative causes to the target ones differed across the lists. Findings show that the judged probability/frequency of a target cause changes as a function of the support of the displayed competing causes. Specifically, it is higher when its competing displayed causes have low rather than high support. Findings are consistent with the contrastive support hypothesis within the support theory.

Escalation of commitment with transparent future outcomes.

A frequent case of irrational decision making is the tendency to escalate commitment to a chosen course of action after unsuccessful prior investments of money, effort, or time (sunk costs). In previous research it is argued that escalation does not occur when future outcomes and alternative investments are transparent. Inconsistent with this argument, in an experiment in which undergraduates were presented fictitious investment problems with sunk costs, escalation was demonstrated when full information was given about investment alternatives and estimates of future returns. Thus, it is indicated that people may escalate despite knowing that it will not make them economically better off. A more comprehensive understanding of escalation requires disentangling people's noneconomic reasons for escalation.

Individual differences in competent consumer choice: the role of cognitive reflection and numeracy skills.

In this paper, we investigate whether cognitive reflection and numeracy skills affect the quality of the consumers' decision-making process in a purchase decision context. In a first (field) experiment, an identical product was on sale in two shops with different initial prices and discounts. One of the two deals was better than the other and the consumers were asked to choose the best one and to describe which arithmetic operations they used to solve the problem; then they were asked to complete the numeracy scale (Lipkus et al., 2001). The choice procedures used by the consumers were classified as "complete decision approach" when all the arithmetic operations needed to solve the problem were computed, and as "partial decision approach" when only some operations were computed. A mediation model shows that higher numeracy is associated with use of the complete decision approach. In turn, this approach is positively associated with the quality of the purchase decision. Given that these findings highlight the importance of the decision processes, in a second (laboratory) experiment we used a supplementary method to study the type of information search used by the participants: eye-tracking. In this experiment the participants were presented with decision problems similar to those used in Experiment 1 and they completed the Lipkus numeracy scale and the Cognitive Reflection Test (CRT; Frederick, 2005). Participants with a high CRT score chose the best deal more frequently, and showed a more profound and detailed information search pattern compared to participants with a low CRT score. Overall, results indicate that higher levels of cognitive reflection and numeracy skills predict the use of a more thorough decision process (measured with two different techniques: retrospective verbal reports and eye movements). In both experiments the decision process is a crucial factor which greatly affects the quality of the purchase decision.

To make people save energy tell them what others do but also who they are: a preliminary study.

A way to make people save energy is by informing them that "comparable others" save more. We investigated whether, one can further improve this nudge by manipulating Who the "comparable others" are. We asked participants to imagine receiving feedback stating that their energy consumption exceeded that of "comparable others" by 10%. We varied Who the "comparable others" were in a 2 × 2 design: they were a household that was located either in the same neighborhood as themselves or in a different neighborhood, and its members were either identified (by names and a photograph) or unidentified. We also included two control conditions: one where no feedback was provided, and one where only statistical feedback was provided (feedback about an average household). We found that it matters Who the "comparable others" are. The most effective feedback was when the referent household was from the same neighborhood as the individual's and its members were not identified.