AGE EFFECTS AND HEURISTICS IN DECISION MAKING

• 成果类型: Article
• 署名作者: Besedes, Tibor; Deck, Cary; Sarangi, Sudipta; Shor, Mikhael
• 署名单位: University System of Georgia; Georgia Institute of Technology; University of Arkansas System; University of Arkansas Fayetteville; Chapman University System; Chapman University; Louisiana State University System; Louisiana State University; University of Connecticut
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00174
• 发表日期: 2012-05
• 页码: 580-595
• 关键词: working-memory; CHOICE; INFORMATION; ALTERNATIVES; capacity; models; number

摘要

Using controlled experiments, we examine how individuals make choices when faced with multiple options. Choice tasks are designed to mimic the selection of health insurance, prescription drug, or retirement savings plans. In our experiment, available options can be objectively ranked, allowing us to examine optimal decision making. First, the probability of a person selecting the optimal option declines as the number of options increases, with the decline being more pronounced for older subjects. Second, heuristics differ by age, with older subjects relying more on suboptimal decision rules. In a heuristics validation experiment, older subjects make worse decisions than younger subjects.