The effect of cognitive load on economic decision making: A survey and new experiments

European Economic Review

Volumn 78, Issue , 2015, Pages 97-119

  Deck, Cary ^a,b   Jahedi, Salar ^c  

^a UNIVERSITY OF ARKANSAS   (United States)

^b CHAPMAN UNIVERSITY   (United States)

^c RAND CORPORATION   (United States)

Author keywords

Anchoring; Cognitive load; Experiments; Impatience; Risk preferences; Unhealthy food choice

Indexed keywords

COGNITION; DECISION MAKING; EXPERIMENTAL STUDY; FOOD CONSUMPTION; FOOD PREFERENCE; RISK FACTOR;

EID: 84933055861     PISSN: 00142921     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.euroecorev.2015.05.004     Document Type: Article

References (61)

1. Abaluck Jason, Gruber Jonathan Choice inconsistencies among the elderly. evidence from plan choice in the medicare part D program. Am. Econ. Rev. 2011, 1180-1210.
2. Allred, Sarah, Duffy, Sean, Smith, John, 2015a. Cognitive Load and Strategic Sophistication. Rutgers University-Camden, Working Paper.
3. Allred, Sarah, Elizabeth, Crawford L., Duffy, Sean, Smith, John, 2015b. Working Memory and Spatial Judgments: Cognitive Load Increases the Central Tendency Bias. Rutgers University-Camden, Working Paper.
4. Andersson, Ola, Tyran, Jean-Robert, Wengström, Erik, Holm, Håkan J., 2013. Risk Aversion Relates to Cognitive Ability: Fact or Fiction? IFN Working Paper No. 964.
5. Beauchamp, Jonathan, Cesarini, David, Johannesson, Magnus, 2012. The Psychometric Properties of Measures of Economic Risk Preferences. New York University, Working Paper.
6. Benjamin Daniel, Brown Sebastian, Shapiro Jesse Who is 'Behavioral'? cognitive ability and anomalous preferences. J. Eur. Econ. Assoc. 2013, 11(6):1231-1255.
7. Bergman Oscar, Ellingsen Tore, Johannesson Magnus, Svensson Cicek Anchoring and cognitive ability. Econ. Lett. 2010, 107(1):66-68.
8. Besedeš Tibor, Deck Cary, Sarangi Sudipta, Shor Mikhael Age effects and heuristics in decision making. Rev. Econ. Stat. 2012, 94(2):580-595.
9. Besedeš, Tibor, Deck, Cary, Sarangi, Sudipta, Shor, Mikhael. Reducing choice overload without reducing choices. Rev. Econ. Stat., in press. http://www.mitpressjournals.org/doi/abs/10.1162/REST_a_00506.
10. Block Richard A., Hancock Peter A., Zakay Dan How cognitive load affects duration judgment. a meta-analytic review. Acta Psychol. 2013, 134(3):330-343.
11. Burks Stephen V., Carpenter Jeffrey P., Goette Lorenz, Rustichini Aldo Cognitive skills affect economic preferences, strategic behavior, and job attachment. Proc. Natl. Acad. Sci. 2009, 106(19):7745-7750.
12. Butler, Jeff, Guiso, Luigi, Jappelli, Tullio, 2013. Manipulating Reliance on Intuition Reduces Risk and Ambiguity Aversion. Centre for Economic Policy Research, Working Paper.
13. Cappelletti Dominique, Guth Werner, Ploner Matteo Being of two minds. ultimatum offers under cognitive constraints. J. Econ. Psychol. 2011, 32(6):940-950.
14. Carpenter Jeffrey, Graham Michael, Wolf Jesse Cognitive ability and strategic sophistication. Games Econ. Behav. 2013, 80:115-130.
15. Chen Chia-Ching, Chiu I., Smith John, Yamada Tetsuji Too smart to be selfish? measures of cognitive ability, social preferences, and consistency. J. Econ. Behav. Organ. 2013, 90:112-122.
16. Corazzini, Luca, Filippin, Antonio, Vanin, Paolo, 2014. Economic Behavior under Alcohol Influence: An Experiment on Time, Risk, and Social Preferences. Universita di Bologna, Working Paper.
17. Cornelissen Gert, Dewitte Siegfried, Warlop Luk, Yzerbyt Vincent Whatever people say I am, that's what I am. social labeling as a social marketing tool. Int. J. Res. Market. 2007, 278-288.
18. Cornelissen Gert, Siegfried Dewitte, Luk Warlop Are Social Value Orientations Expressed Automatically? Decision Making in the Dictator Game. Personality and Social Psychology Bulletin 2011, 37(8):1080-1090.
19. De Neys Wim Dual processing in reasoning. two systems but one reasoner. Psychol. Sci. 2006, 17(5):428-433.
20. Deck Cary, Jahedi Salar An experimental investigation of time discounting in strategic settings. J. Behav. Exp. Econ. 2015, 54(February):95-104.
21. Deck Cary, Jahedi Salar Time discounting in strategic contests. J. Econ. Manag. Strategy 2015, 24(February (1)):151-164.
22. Dohmen Thomas, Falk Armin, Huffman David, Sunde Uwe Are risk aversion and impatience related to cognitive ability?. Am. Econ. Rev. 2010, 100(3):1238-1260.
23. Duffy Sean, Smith John Cognitive load in the multi-player prisoner's dilemma game. are there brains in games?. J. Behav. Exp. Econ. 2014, 51:47-56.
24. Fischbacher Urs z-Tree. Zurich toolbox for ready-made economic experiments. Exp. Econ. 2007, 10(2):171-178.
25. Franco-Watkins Ana M., Pashler Harold, Rickard Timothy C. Does working memory load lead to greater impulsivity? Commentary on Hinson, Jameson, and Whitney (2003). J. Exp. Psychol.: Learn. Mem. Cognit. 2006, 32(2):443-447.
26. Franco-Watkins Ana M., Rickard Timothy C., Pashler Hal Taxing executive processes does not necessarily increase impulsive decision making. Exp. Psychol. 2010, 57(3):193-201.
27. Frederick Shane Cognitive reflection and decision making. J. Econ. Perspect. 2005, 19(4):25-42.
28. Fudenberg Drew, Levine David K. A dual-self model of impulse control. Am. Econ. Rev. 2006, 96(5):1449-1476.
29. Gerhardt, Holger, 2013. Essays in Experimental and Neuroeconomics (Ph.D. Dissertation). Humboldt University of Berlin.
30. Getz, Sarah Jean, 2013. Cognitive Control and Intertemporal Choice: The Role of Cognitive Control in Impulsive Decision Making (Ph.D. Dissertation). Princeton University,.
31. Gilbert Daniel T., Pelham Brett W., Krull Douglas S. On cognitive busyness. when person perceivers meet persons perceived. J. Personal. Soc. Psychol. 1988, 54(5):733.
32. Greene Joshua D., Morelli Sylvia A., Lowenberg Kelly, Nystrom Leigh E., Cohen Jonathan D. Cognitive load selectively interferes with utilitarian moral judgment. Cognition 2008, 107(3):1144-1154.
33. Hauge, Karen Evelyn, Brekke, Kejll Arne, Johansson, Lars-Olof, Johansson-Stenman, Olof, Svedsater, Henrik. 2014. Keeping Others in Our Mind or in Our Heart? Distribution Games under Cognitive Load. University of Gothenburg, Working Paper.
34. Hinson John M., Jameson Tina L., Whitney Paul Impulsive decision making and working memory. J. Exp. Psychol.: Learn. Mem. Cognit. 2003, 29(2):298-306.
35. Iyengar Sheena S., Huberman Gur, Jiang Wei How much choice is too much? contributions to 401(k) retirement plans. Pension Des. Struct.: New Lessons Behav. Finance 2004, 83-95.
36. Kahneman, Daniel, 2002. Maps of Bounded Rationality: A Perspective on Intuitive Judgment and Choice. Nobel Prize Lecture, December 8, pp. 351-401. see 〈〉. http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2002/kahnemann-lecture.pdf.
37. Kahneman, Daniel, 2011. Thinking, Fast and Slow. Farrar, Straus and Giroux.
38. Köszegi Botond, Rabin Matthew A model of reference-dependent preferences. Q. J. Econ. 2006, 121(4):1133-1165.
39. Laibson David Golden eggs and hyperbolic discounting. Q. J. Econ. 1997, 112(2):443-477.
40. Loewenstein, George, ODonoghue, Ted, 2004. Animal Spirits: Affective and Deliberative Processes in Economic Behavior. Available at SSRN 539843.
41. Mani Anandi, Mullainathan Sendhil, Shafir Eldar, Zhao Jiaying Poverty impedes cognitive function. Science 2013, 341(6149):976-980.
42. McKenna Benjamin S., Dickinson David L., Orff Henry J., Drummond Sean The Effects of one night of sleep deprivation on known-risk and ambiguous-risk decisions. J. Sleep Res. 2007, 16(3):245-252.
43. Milinski Manfred, Wedekind Claus Working memory constrains human cooperation in the prisoner's dilemma. Proc. Natl. Acad. Sci. 1998, 5:13755-13758.
44. Miller George A. The magic number seven plus or minus two. some limits on our capacity to process information. Psychol. Rev. 1956, 63(2):81.
45. Mukherjee Kanchan A dual system model of preferences under risk. Psychol. Rev. 2010, 117:243-255.
46. Oechssler Jorg, Roider Andreas, Schmitz Patrick W. Cognitive abilities and behavioral biases. J. Econ. Behav. Organ. 2009, 72(1):147-152.
47. Rand David G., Greene Joshua D., Nowak Martin A. Spontaneous giving and calculated greed. Nature 2012, 489(7416):427-430.
48. Roch Sylvia G., Lane John A.S., Samuelson Charles D., Allison Scott T., Dent Jennifer L. Cognitive load and the equality heuristic. a two-stage model of resource overconsumption in small groups. Organ. Behav. Hum. Decis. Process. 2000, 83(2):185-212.
49. Rydval, Ondrej, 2011. The Causal Effect of Cognitive Abilities on Economic Behavior: Evidence from a Forecasting Task with Varying Cognitive Load. University of Jena, Working Paper.
50. Schram Arthur, Sonnemans Joep How individuals choose health insurance. an experimental analysis. Eur. Econ. Rev. 2011, 55(6):799-819.
51. Schulz Jonathan F., Fischbacher Urs, Thoni Christian, Utikal Verena Affect and fairness. dictator games under cognitive load. J. Econ. Psychol. 2014, 41:77-87.
52. Shamosh Noah A., Gray Jeremy R. Delay discounting and intelligence. a meta-analysis. Intelligence 2008, 36(4):289-305.
53. Shiv Baba, Fedorikhin Alexander Heart and mind in conflict. the interplay of affect and cognition in consumer decision making. J. Consum. Res. 1999, 26(3):278-292.
54. Sprenger Amber M., Dougherty Michael R., Atkins Sharona M., Franco-Watkins Ana M., Thomas Rick P., Lange Nicholas, Abbs Brandon Implications of cognitive load for hypothesis generation and probability judgment. Front. Psychol. 2011, 2:1-15.
55. Tversky Amos, Kahneman Daniel Judgment under uncertainty. heuristics and biases. Science 1974, 185(4157):1124-1131.
56. Tversky Amos, Simonson Itamar Context-dependent preferences. Manag. Sci. 1993, 39(10):1179-1189.
57. Van den Bos Kees, Peters Susanne L., Bobocel D.Ramona, Ybema Jan Fekke On preferences and doing the right thing. satisfaction with advantageous inequity when cognitive processing is limited. J. Exp. Soc. Psychol. 2006, 42(3):273-289.
58. Van Boven Leaf, Robinson Michael D. Boys don't cry. cognitive load and priming increase stereotypic sex difference in emotion memory. J. Exp. Soc. Psychol. 2012, 48(1):303-309.
59. Ward Andrew, Mann Traci Don't mind if I do. disinhibited eating under cognitive load. J. Personal. Soc. Psychol. 2000, 78(4):753-763.
60. Whitney Paul, Rinehart Christa A., Hinson John M. Framing effects under cognitive load. the role of working memory in risky decisions. Psychon. Bull. Rev. 2008, 15(6):1179-1184.
61. Zimmerman Frederick J., Shimoga Sandhya V. The effects of food advertising and cognitive load on food choices. BMC Public Health 2014, 14(1):342.