Age Effects and Heuristics in Decision Making
AbstractUsing 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. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Download InfoIf 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.
Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics and Statistics.
Volume (Year): 94 (2012)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
Other versions of this item:
- Tibor Besedes & Cary Deck & Sudipta Sarangi & Mikhael Shor, 2010. "Age Effects and Heuristics in Decision Making," Discussion Papers of DIW Berlin 1047, DIW Berlin, German Institute for Economic Research.
- Sudipta Sarangi & Tibor Besedes & Cary Deck & Mikhael Shor, . "Age Effects and Heuristics in Decision Making," Departmental Working Papers 2009-03, Department of Economics, Louisiana State University.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Besedeš, Tibor & Deck, Cary & Sarangi, Sudipta & Shor, Mikhael, 2012.
"Decision-making strategies and performance among seniors,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 81(2), pages 524-533.
- Sudipta Sarangi & Tibor Besedes & Cary Deck & Mikhael Shor, . "Decision-making Strategies and Performance among Seniors," Departmental Working Papers 2011-08, Department of Economics, Louisiana State University.
- Madiès, Thierry & Villeval, Marie Claire & Wasmer, Malgorzata, 2013.
"Intergenerational attitudes towards strategic uncertainty and competition: A field experiment in a Swiss bank,"
European Economic Review,
Elsevier, vol. 61(C), pages 153-168.
- Thierry Madiès & Marie Claire Villeval & Malgorzata Wasmer, 2013. "Intergenerational Attitudes Towards Strategic Uncertainty and Competition: A Field Experiment in a Swiss Bank," Post-Print halshs-00807436, HAL.
- Allen N. Berger & Thomas Kick & Klaus Schaeck, 2012.
"Executive Board Composition and Bank Risk Taking,"
12004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Barrutia Legarreta, José María & Espinosa Alejos, María Paz, 2012. "Consumer Expertise or Credit Risk? An empirical analysis of mortgage pricing," DFAEII Working Papers 2012-04, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Besedes, Tibor & Deck, Cary & Quintanar, Sarah & Sarangi, Sudipta & Shor, Mikhael, 2011.
"Free-Riding and Performance in Collaborative and Non-Collaborative Groups,"
33948, University Library of Munich, Germany.
- Tibor Besedes & Cary Deck & Sarah Quintanar & Sudipta Sarangi & Mikhael Shor, 2012. "Free-Riding and Performance in Collaborative and Non-Collaborative Groups," Working papers 2012-21, University of Connecticut, Department of Economics.
- Tibor Besedes & Cary Deck & Sudipta Sarangi & Mikhael Shor, 2012.
"Designing a Sequential Choice Architecture to Reduce Choice Overload,"
2012-24, University of Connecticut, Department of Economics.
- Besedes, Tibor & Deck, Cary & Sarangi, Sudipta & Shor, Mikhael, 2012. "Designing a sequential choice architecture to reduce choice overload," MPRA Paper 38173, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.