How Do Simple Games Help us to Understand Decision-Making?

Abstract

We have to make lots of decisions every day, and sometimes we only have a short time or very little energy to put into making certain decisions. What determines whether we make good or bad decisions? Researchers have found there are different types of decision-makers, and they differ in how satisfied they are with their decisions. In our lab, we use simple games such as Rock, Paper, Scissors to study how good and bad decisions are made. We have found that people tend to make worse decisions after a negative outcome, such as losing the previous game. We have also found that people tend to spend less time thinking about their next decision after losing. Based on these results, we suggest taking your time when making a decision after a negative outcome in order to prevent making a hasty decision.