When do consumers favor overly precise information about investment returns?

Consumers are often shown investment returns with high levels of precision, which could lead them to misunderstand the inherent uncertainty. We test whether consumers are drawn to precision-that is offset the uncertainty in investment decisions by over-relying on precise numerical information. Five incentivized experiments compared decisions when expected growth is presented in precise forecasts as opposed to ranges. Consumers are more likely to prefer and invest more in precise forecasts when they are evaluated jointly with ranges and when the range features a potential loss. Under these circumstances, precise forecasts give consumers more confidence to invest. This effect holds when consumers are told investment returns are uncertain. On the other hand, experiencing discrepancies between expected and actual growth dissipates the preference for precise forecasts. We identify conditions under which consumers are more likely to favor precise forecasts and how this could be avoided if necessary. (PsycInfo Database Record (c) 2023 APA, all rights reserved).

Grip Strength Trajectories and Cognition in English and Chilean Older Adults: A Cross-Cohort Study.

Growing evidence about the link between cognitive and physical decline suggests the early changes in physical functioning as a potential biomarker for cognitive impairment. Thus, we compared grip-strength trajectories over 12-16 years in three groups classified according to their cognitive status (two stable patterns, normal and impaired cognitive performance, and a declining pattern) in two representative UK and Chilean older adult samples. The samples consisted of 7069 UK (ELSA) and 1363 Chilean participants (ALEXANDROS). Linear Mixed models were performed. Adjustments included socio-demographics and health variables. The Declined and Impaired group had significantly lower grip-strength at baseline when compared to the Non-Impaired. In ELSA, the Declined and Impaired showed a faster decline in their grip strength compared to the Non-Impaired group but differences disappeared in the fully adjusted models. In ALEXANDROS, the differences were only found between the Declined and Non-Impaired and they were partially attenuated by covariates. Our study provides robust evidence of the association between grip strength and cognitive performance and how socio-economic factors might be key to understanding this association and their variability across countries. This has implications for future epidemiological research, as hand-grip strength measurements have the potential to be used as an indicator of cognitive performance.

Conviction Narrative Theory: A theory of choice under radical uncertainty.

Conviction Narrative Theory (CNT) is a theory of choice under radical uncertainty - situations where outcomes cannot be enumerated and probabilities cannot be assigned. Whereas most theories of choice assume that people rely on (potentially biased) probabilistic judgments, such theories cannot account for adaptive decision-making when probabilities cannot be assigned. CNT proposes that people use narratives - structured representations of causal, temporal, analogical, and valence relationships - rather than probabilities, as the currency of thought that unifies our sense-making and decision-making faculties. According to CNT, narratives arise from the interplay between individual cognition and the social environment, with reasoners adopting a narrative that feels "right" to explain the available data; using that narrative to imagine plausible futures; and affectively evaluating those imagined futures to make a choice. Evidence from many areas of the cognitive, behavioral, and social sciences supports this basic model, including lab experiments, interview studies, and econometric analyses. We identify 12 propositions to explain how the mental representations (narratives) interact with four inter-related processes (explanation, simulation, affective evaluation, and communication), examining the theoretical and empirical basis for each. We conclude by discussing how CNT can provide a common vocabulary for researchers studying everyday choices across areas of the decision sciences.

Negative consequences of failing to communicate uncertainties during a pandemic: an online randomised controlled trial on COVID-19 vaccines.

OBJECTIVE: To examine the impact of the government communicating uncertainties relating to COVID-19 vaccine effectiveness on vaccination intention and trust after people are exposed to conflicting information. DESIGN: Experimental design where participants were randomly allocated to one of two groups. SETTING: Online. PARTICIPANTS: 328 adults from a UK research panel. INTERVENTION: Participants received either certain or uncertain communications from a government representative about COVID-19 vaccine effectiveness, before receiving conflicting information about effectiveness. MAIN OUTCOME MEASURES: Vaccination intention and trust in government. RESULTS: Compared with those who received the uncertain announcement from the government, participants who received the certain announcement reported a greater loss of vaccination intention (d=0.34, 95% CI (0.12 to 0.56), p=0.002) and trust (d=0.34, 95% CI (0.12 to 0.56), p=0.002) after receiving conflicting information. CONCLUSIONS: Communicating with certainty about COVID-19 vaccines reduces vaccination intention and trust if conflicting information arises, whereas communicating uncertainties can protect people from the negative impact of exposure to conflicting information. There are likely to be other factors affecting vaccine intentions, which we do not account for in this study. TRIAL REGISTRATION NUMBER: Open Science Framework: https://osf.io/c73px/.

The negative consequences of failing to communicate uncertainties during a pandemic:The case of COVID-19 vaccines

Uncertainties pervade our health choices, particularly in the context of a novel pandemic. Despite this, rather little is known about when and how to effectively communicate these uncertainties. The focus in the medical literature so far has been on how patients respond to mentions of uncertainty relating to diagnosis or treatment, showing that these can have detrimental effects on trust and satisfaction. On the other hand, how patients are affected by these communications over time, particularly in the face of conflicting information, has received little attention. This is particularly important in the context a novel pandemic where uncertainty is rife and information changes over time. To fill this gap, we conducted an online study with UK participants on hypothetical communications relating to COVID-19 vaccines. Participants first read a vaccine announcement, which either communicated with certainty or uncertainty, and then received information which conflicted with the announcement. Those who were exposed to the certain announcement reported a greater loss of trust and vaccination intention than those who were exposed to the uncertain announcement. This shows that communicating with unwarranted certainty can backfire in the long-term, whereas communicating uncertainties can protect people from the negative impact of exposure to conflicting information.