Arbeitspapier
Age effects and heuristics in decision making
Using controlled experiments, we examine how individuals make choices when faced with multiple options. Choice tasks are designed to mimic the selection of health insurance, prescription drug, or retirement savings plans. In our experiment, available options can be objectively ranked allowing us to examine optimal decision making. First, the probability of a person selecting the optimal option declines as the number of options increases, with the decline being more pronounced for older subjects. Second, heuristics differ by age with older subjects relying more on suboptimal decision rules. In a heuristics validation experiment, older subjects make worse decisions than younger subjects.
- Language
-
Englisch
- Bibliographic citation
-
Series: DIW Discussion Papers ; No. 1047
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Health: Government Policy; Regulation; Public Health
- Subject
-
Experiments
decision making
optimal choice
age effects
heuristics
Entscheidung
Test
Altersgruppe
- Event
-
Geistige Schöpfung
- (who)
-
Besedes, Tibor
Deck, Carey
Sarangi, Sudipta
Shor, Mikhael
- Event
-
Veröffentlichung
- (who)
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Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
-
Berlin
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Besedes, Tibor
- Deck, Carey
- Sarangi, Sudipta
- Shor, Mikhael
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2010
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