Exploring Sequential Choice Task Strategies

Abstract

The current study provides evidence that individuals tend to adopt an integrative choice strategy when making sequential decisions under conditions of uncertainty. This contrasts with prior literature which proposes that decisions are made one at a time in isolation from one another (Camerer et al., 1997). By creating an experimental work task where only wage quality and feedback are manipulated, the resulting changes in intertemporal substitution between work and leisure are observed. In Experiments 1 3, a positive relationship between wages and time spent working that did not depend on task experience was observed. These results suggest that decisions are being made in consideration of other decisions, as isolated decisions would yield a negative relationship between wages and time spent working. In Experiment 4 these results were mitigated by the difficulty in differentiating between low and high wage quality days. These findings are taken to suggest that the results of prior studies are primarily due to self-control issues that subjects faced, which are not present in the present study.