Advanced Search
MyIDEAS: Login

Two sides of the same coin: Information processing style and reverse biases

Contents:

Author Info

  • Shahar Ayal
  • Guy Hochman
  • Dan Zakay
Registered author(s):

    Abstract

    This paper examines the effect of information processing styles (indexed by the Rational-Experiential Inventory of Pacini and Epstein, 1999) on adherence to bias judgments, and particularly to reverse biases; i.e., when two choice questions that comprise identical normative components are set in different situations and yield seemingly opposite behavioral biases. We found consistent evidence for a negative correlation between rational score and adherence to reverse biases, as well as overall biases, for all three pairs of reverse biases tested. Further, this effect of rational thinking was more pronounced for high experiential individuals, in that high-rational and high-experiential participants committed fewer biases than all other participants. These results lend weight to our claim that low-rational individuals, who are more sensitive to the context, are more prone to utilize some attribute of the provided information when it is uncalled for, but at the same time tend to ignore it or give it too little weight when it is a crucial factor in a normative decision process.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://journal.sjdm.org/11/11320/jdm11320.pdf
    Download Restriction: no

    File URL: http://journal.sjdm.org/11/11320/jdm11320.html
    Download Restriction: no

    Bibliographic Info

    Article provided by Society for Judgment and Decision Making in its journal Judgment and Decision Making.

    Volume (Year): 6 (2011)
    Issue (Month): 4 (June)
    Pages: 295-306

    as in new window
    Handle: RePEc:jdm:journl:v:6:y:2011:i:4:p:295-306

    Contact details of provider:

    Related research

    Keywords: Rational-Experiential Inventory; cognitive bias; individual differences.;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Hsee, Christopher K & Leclerc, France, 1998. " Will Products Look More Attractive When Presented Separately or Together?," Journal of Consumer Research, University of Chicago Press, vol. 25(2), pages 175-86, September.
    2. Andreas Glöckner & Tilmann Betsch, 2008. "Multiple-Reason Decision Making Based on Automatic Processing," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2008_12, Max Planck Institute for Research on Collective Goods.
    3. McAlister, Leigh, 1982. " A Dynamic Attribute Satiation Model of Variety-Seeking Behavior," Journal of Consumer Research, University of Chicago Press, vol. 9(2), pages 141-50, September.
    4. Fetherstonhaugh, David, et al, 1997. "Insensitivity to the Value of Human Life: A Study of Psychophysical Numbing," Journal of Risk and Uncertainty, Springer, vol. 14(3), pages 283-300, May-June.
    5. James Sundali & Rachel Croson, 2006. "Biases in casino betting: The hot hand and the gambler's fallacy," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 1-12, July.
    6. Carissa Bonner & Ben R. Newell, 2008. "How to make a risk seem riskier: The ratio bias versus construal level theory," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 3, pages 411-416, June.
    7. Jiwoong Shin & Dan Ariely, 2004. "Keeping Doors Open: The Effect of Unavailability on Incentives to Keep Options Viable," Management Science, INFORMS, vol. 50(5), pages 575-586, May.
    8. Baron, Jonathan, 1997. "Confusion of Relative and Absolute Risk in Valuation," Journal of Risk and Uncertainty, Springer, vol. 14(3), pages 301-9, May-June.
    9. Slovic, Paul & Finucane, Melissa & Peters, Ellen & MacGregor, Donald G., 2002. "Rational actors or rational fools: implications of the affect heuristic for behavioral economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(4), pages 329-342.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:jdm:journl:v:6:y:2011:i:4:p:295-306. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jonathan Baron).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.