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Speed, Quality, and the Optimal Timing of Complex Decisions: Field Evidence

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  • Uwe Sunde
  • Dainis Zegners
  • Anthony Strittmatter

Abstract

This paper presents an empirical investigation of the relation between decision speed and decision quality for a real-world setting of cognitively-demanding decisions in which the timing of decisions is endogenous: professional chess. Move-by-move data provide exceptionally detailed and precise information about decision times and decision quality, based on a comparison of actual decisions to a computational benchmark of best moves constructed using the artificial intelligence of a chess engine. The results reveal that faster decisions are associated with better performance. The findings are consistent with the predictions of procedural decision models like drift-diffusion-models in which decision makers sequentially acquire information about decision alternatives with uncertain valuations.

Suggested Citation

  • Uwe Sunde & Dainis Zegners & Anthony Strittmatter, 2022. "Speed, Quality, and the Optimal Timing of Complex Decisions: Field Evidence," CESifo Working Paper Series 9546, CESifo.
    • Handle: RePEc:ces:ceswps:_9546
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    References listed on IDEAS

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    1. Gürtler, Oliver & Struth, Lennart & Thon, Max, 2023. "Competition and risk-taking," European Economic Review, Elsevier, vol. 160(C).

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    More about this item

    Keywords

    response times; speed-performance profile; drift-diffusion model; uncertain evaluations;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General

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