IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03532489.html

Individual differences in decision-making: A test of a one-factor model of rationality

Author

Listed:
  • Vincent Berthet

    (2LPN - Laboratoire lorrain de psychologie et neurosciences de la dynamique des comportements - UL - Université de Lorraine)

  • David Autissier

    (IAE Paris-Est - Institut d'Administration des Entreprises - Paris-Est - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel)

  • Vincent de Gardelle

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The study of individual differences in rational decision-making has led to two close streams of research. While the study of scores to the Adult-Decision Making Competence (A-DMC) tasks has provided evidence in favor of a general decision-making competence (DMC) factor, studies investigating individual differences in performance on heuristics and biases tasks have challenged a one-factor model of rationality. Assuming that heuristics and biases are part of DMC and considering that the A-DMC assesses just a few of them, the aim of the present study was to test whether a general DMC factor still emerges when adding four heuristics and biases tasks to the six A-DMC tasks, while ensuring satisfactory levels of score reliability. Exploratory factor analyses revealed that while performance on the A-DMC tasks can be reasonably aggregated into a general DMC measure, a two-factor model provided the best statistical and conceptual fit of the 10 tasks combined, the two factors reflecting Mindware gaps and Contaminated mindware.

Suggested Citation

  • Vincent Berthet & David Autissier & Vincent de Gardelle, 2022. "Individual differences in decision-making: A test of a one-factor model of rationality," Post-Print hal-03532489, HAL.
    • Handle: RePEc:hal:journl:hal-03532489
    DOI: 10.1016/j.paid.2021.111485
    Note: View the original document on HAL open archive server: https://hal.science/hal-03532489v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03532489v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.paid.2021.111485?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Saima Ghazal & Edward T. Cokely & Rocio Garcia-Retamero, 2014. "Predicting biases in very highly educated samples: Numeracy and metacognition," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(1), pages 15-34, January.
    2. Irene Scopelliti & Carey K. Morewedge & Erin McCormick & H. Lauren Min & Sophie Lebrecht & Karim S. Kassam, 2015. "Bias Blind Spot: Structure, Measurement, and Consequences," Management Science, INFORMS, vol. 61(10), pages 2468-2486, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fasolo, Barbara & Heard, Claire & Scopelliti, Irene, 2024. "Mitigating cognitive bias to improve organizational decisions: an integrative review, framework, and research agenda," LSE Research Online Documents on Economics 125404, London School of Economics and Political Science, LSE Library.
    2. Ray Saadaoui Mallek & Mohamed Albaity, 2019. "Individual differences and cognitive reflection across gender and nationality the case of the United Arab Emirates," Cogent Economics & Finance, Taylor & Francis Journals, vol. 7(1), pages 1567965-156, January.
    3. André Mata & Tiago Almeida, 2014. "Using metacognitive cues to infer others' thinking," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(4), pages 349-359, July.
    4. Darriet, Elisa & Guille, Marianne & Vergnaud, Jean-Christophe & Shimizu, Mariko, 2020. "Money illusion, financial literacy and numeracy: Experimental evidence," Journal of Economic Psychology, Elsevier, vol. 76(C).
    5. Siebert, Johannes Ulrich & Kunz, Reinhard E. & Rolf, Philipp, 2021. "Effects of decision training on individuals’ decision-making proactivity," European Journal of Operational Research, Elsevier, vol. 294(1), pages 264-282.
    6. Mondal, Supratik & Traczyk, Jakub, 2023. "Conditionality of adaptiveness: Investigating the relationship between numeracy and adaptive behavior," Journal of Economic Psychology, Elsevier, vol. 96(C).
    7. Elisa Darriet & Marianne Guille & Jean-Christophe Vergnaud, 2021. "Financial Literacy and Numeracy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03461252, HAL.
    8. Christopher K. Hsee & Ying Zeng & Xilin Li & Alex Imas, 2021. "Bounded Rationality in Strategic Decisions: Undershooting in a Resource Pool-Choice Dilemma," Management Science, INFORMS, vol. 67(10), pages 6553-6567, October.
    9. Kevin E. Tiede & Wolfgang Gaissmaier, 2023. "How Do People Process Different Representations of Statistical Information? Insights into Cognitive Effort, Representational Inconsistencies, and Individual Differences," Medical Decision Making, , vol. 43(7-8), pages 803-820, October.
    10. Maria De Paola & Francesca Gioia & Fabio Piluso, 2020. "Does Reminding of Behavioural Biases Increase Returns from Financial Trading? A Field Experiment," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(2), pages 1-1, February.
    11. Nikola Erceg & Zvonimir Galić & Mitja RužojÄ ić, 2020. "A reflection on cognitive reflection – testing convergent/divergent validity of two measures of cognitive reflection," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(5), pages 741-755, September.
    12. Thérèse Lind & Ali Ahmed & Kenny Skagerlund & Camilla Strömbäck & Daniel Västfjäll & Gustav Tinghög, 2020. "Competence, Confidence, and Gender: The Role of Objective and Subjective Financial Knowledge in Household Finance," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 626-638, December.
    13. Kathleen A. Tomlin & Matthew L. Metzger & Jill Bradley-Geist, 2021. "Removing the Blinders: Increasing Students’ Awareness of Self-Perception Biases and Real-World Ethical Challenges Through an Educational Intervention," Journal of Business Ethics, Springer, vol. 169(4), pages 731-746, April.
    14. Brown, Martin & Kirschenmann, Karolin & Spycher, Thomas, 2017. "Numeracy and the quality of on-the-job decisions: Evidence from loan officers," Working Papers on Finance 1711, University of St. Gallen, School of Finance.
    15. James G. Dolan & Olena A. Cherkasky & Qinghua Li & Nancy Chin & Peter J. Veazie, 2016. "Should Health Numeracy Be Assessed Objectively or Subjectively?," Medical Decision Making, , vol. 36(7), pages 868-875, October.
    16. Philip W. S. Newall, 2016. "Downside financial risk is misunderstood," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(5), pages 416-423, September.
    17. Jidapa Pruksarungruang & Douglas Rhein, 2022. "Depression Literacy: An Analysis of the Stigmatization of Depression in Thailand," SAGE Open, , vol. 12(4), pages 21582440221, December.
    18. Jakub Traczyk & Agata Sobkow & Kamil Fulawka & Jakub Kus & Dafina Petrova & Rocio Garcia-Retamero, 2018. "Numerate decision makers don't use more effortful strategies unless it pays: A process tracing investigation of skilled and adaptive strategy selection in risky decision making," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(4), pages 372-381, July.
    19. Skagerlund, Kenny & Lind, Thérèse & Strömbäck, Camilla & Tinghög, Gustav & Västfjäll, Daniel, 2018. "Financial literacy and the role of numeracy–How individuals’ attitude and affinity with numbers influence financial literacy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 74(C), pages 18-25.
    20. Gerrans, Paul & Hoffmann, Arvid O.I. & McNair, Simon J. & Pallant, Jason I., 2025. "More than objective knowledge: Exploring heterogeneity in individuals' response to a financial education initiative across multiple financial literacy domains," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03532489. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.