High-value decisions are fast and accurate, inconsistent with diminishing value sensitivity.

ABSTRACT: It is a widely held belief that people's choices are less sensitive to changes in value as value increases. For example, the subjective difference between $11 and $12 is believed to be smaller than between $1 and $2. This idea is consistent with applications of the Weber-Fechner Law and divisive normalization to value-based choice and with psychological interpretations of diminishing marginal utility. According to random utility theory in economics, smaller subjective differences predict less accurate choices. Meanwhile, in the context of sequential sampling models in psychology, smaller subjective differences also predict longer response times. Based on these models, we would predict decisions between high-value options to be slower and less accurate. In contrast, some have argued on norm

SUBMITTER: Shevlin BRK 

PROVIDER: S-EPMC8832986 | biostudies-literature | 2022 Feb

REPOSITORIES: biostudies-literature