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Keywords
- decision making (2)
- Stress reaction (1)
- beauty contest game (1)
- cognitive processes (1)
- cortisol (1)
- creativity (1)
- memory (1)
- option generation (1)
- strategic decision making (1)
- strategic interaction (1)
The present study sought to examine the underpinnings of impaired strategic decision-making under stress. In contrast to previous laboratory-based research, we conducted a quasi-experiment in a real life stress situation. Specifically, we used the beauty contest game and compared the performance of a group of participants who were exposed to a real-life stressor (waiting to attend an exam at a university class) with a control group of participants who were not exposed to stress (waiting to attend a regular lecture at a university class). Furthermore, about half of the participants were instructed to write down what they believed another participant had assumed the average number in the beauty contest game to be and which target number she (or he) had chosen accordingly. The results showed that stress impaired strategic reasoning in the beauty contest game. Importantly, even when only including participants who understood the rules of the game in the analyses, stress still increased the numbers chosen in the beauty contest. Furthermore, we found that participants in the stress condition were significantly less likely to base their chosen number on their belief about other players’ choices. Hence, stress not only impairs understanding of the math behind the beauty contest game but also the degree of strategizing per se.
Often, economic decisions do not only depend on one's own preferences, but also on the choices of others and therefore require strategizing (i.e., thinking about what others might think). In experimental economics, this has been modeled by the beauty contest game. Another typical feature of economic decisions is that they are often carried out under stress. Therefore, in the present study, we aimed to examine the influence of stress on decision-making in the beauty contest game. Participants were randomly assigned to either the Trier Social Stress Test for Groups (TSST-G) or a placebo version of the TSST-G (control condition). Then, participants played four rounds of a standard beauty contest game. As a biomarker of stress, salivary cortisol was measured. As predicted, participants under stress chose higher numbers in the beauty contest game than non-stressed participants, indicating less strategizing. This effect was mediated by the stress-induced increase in cortisol.
The ability to generate options for action is crucial for everyday life decision‐making. In this article, we propose and test a model of the cognitive underpinnings of option generation in everyday life situations. We carried out a laboratory study using measures of a wide range of cognitive functions and asked participants (N = 157) to generate options for actions for different everyday life decision‐making scenarios. The results of a latent variable analysis show that the cognitive underpinnings of option generation are consistent across different everyday life situations and, hence, option generation can be conceptualized as a general construct. Moreover, the results of a confirmatory factor analysis reveal that, when controlling for the shared variance among the cognitive processes assessed, verbal fluency, working memory capacity, ideation fluency, and processing speed predicted option generation. These findings suggest that option generation in everyday life situations can be distinguished from other cognitive constructs, such as divergent thinking (in terms of ideas’ originality) and long‐term memory.