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.

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.

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.

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.

The effects of incidental scents in the evaluation of environmental goods: The role of congruity.

We investigated whether pleasant ambient scents influence hypothetical and real money contributions toward environmental goods. We hypothesized that they would increase such contributions more when they were congruent with the target goods than when they were incongruent or when no scent was released. The results supported this congruity hypothesis. We offer a mental accessibility account: Pleasant scents that are congruent with a target good make positive information about that good more accessible and thus promote prosocial behavior.

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.

On the evaluation of cultural and environmental public goods, and its implications for social innovation.

Public goods (e.g., parks) and welfare services (e.g., garbage disposal and transportation policies) are extremely important for the citizens' well-being but in the complex modern societies their influence and effectiveness are affected by the citizens' support. For this reason, it is crucial to understand which are the factors that influence the citizens' perception of the benefits, costs, and risks associated to public goods and welfare services. In this chapter, we describe some psychological variables that are relevant for the evaluation process of the public goods, but that are not considered by the standard economic models. At the same time, we show that some variables of central importance for the economic models do not significantly affect the citizens' evaluations. Finally, we discuss the concept of Nudge, a policy-making approach that suggests the use of psychological mechanisms to increase the citizens' support to public provision of welfare services.