Good Feedback Can Lead To Better Decision Making

This study reveals that feedback under the right circumstances can lead us to making more rational decisions. (Click here to skip the introduction and read about the study of feed back and decision making)

Article Introduction (Via Science Daily)

Every day we are faced with a multitude of choices, but the majority of these fall into two categories: descriptive choice (based on what we are told) and experiential choice (based on our own personal experience). An example of these choices would be deciding whether or not to wear a helmet while cycling. If we are told that wearing a helmet is for our safety, then choosing to wear one or not would be a descriptive choice. However, if instead we see that our friends never wear helmets and that they have never been hurt, then choosing to wear one or not would be an experience-based choice.

Article Excerpt (Via Science Daily)

“The results, reported in the October issue of Psychological Science, a journal of the Association for Psychological Science, suggest that feedback plays a key role in decision making. The psychologists discovered that participants responded differently, depending on whether or not they received feedback, even though they were presented with complete descriptive information. In other words, when people were given feedback about a situation, they began to ignore what they were explicitly told about the situation.”

Conclusion (Via Science Daily)

Contrasting with prevailing theories of individual choice in economics, the researchers note that the group receiving feedback began to treat the small probabilities in a more objective way, suggesting that feedback after repeated choice may drive people towards rational decision making.

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