A Dynamic Dual-Process Model of Decision-making Under Uncertainty

Abstract

Current dynamic models of decision-making assume that a unitary system is responsible for forming preferences. However, extensive research has shown that decision-making and behavior result from the interaction of two separate systems of reasoning - one that is fast, automatic, and experiential and one that is slow, deliberative and rational. This paper develops the first dynamic dual-process model of decision-making that can account for choice, response times, and prices. The model is applied to several phenomena from the risky decision-making literature including enhancements in preference by small losses, preference reversals due to response mode, and the influence of price and affect on preference.


Back to Table of Contents