Numeracy predicts preference consistency: Deliberative search heuristics increase choice consistency for choices from description and experience

Abstract

AbstractMany people exhibit inconsistent preferences when they make choices based on descriptive summaries as compared to choices based on prior experiences. Theoretically, factors that promote more deliberative and skilled decision making (e.g., statistical numeracy) should also tend to promote more consistent choices and preferences regardless of information presentation formats. To test this hypothesis, in two studies I investigated individual differences in information search strategies (e.g., the amount and direction of information search) while estimating the degree to which numeracy predicted risky choice consistency across (a) decisions-from-description and (b) the decisions-from-samples. Results from Study 1 revealed that numeracy was generally associated with more extensive sampling and greater choice consistency across paradigms. Instead of reflecting differences in logical maximizing strategies (e.g., calculating expected values), analyses indicated that highly-numerate participants largely generated consistent choices by relying on heuristic-type processes (e.g., alternated between options less and exploring options with higher outcome variability more). In Study 2, the relationship between numeracy and choice consistency was eliminated when all participants were forced to make choices after experiencing the same fixed amount of sampling (i.e., provided the same amount of information). Taken together, the results of both studies converge with and extend previous findings (e.g., Skilled Decision Theory), indicating that numerate participants may generally exhibit more consistent preferences and choices via deliberatative heuristic search during decision making.