Effect of Incentive upon Information Use in a Choice Situation

Abstract

Using a static decision situation, 120 Ss were run in a 2 × 2 × 2 factorial design in which the main variables were number of choice alternatives (2 or 8), likelihood that the information provided was correct (higher or lower than chance), and presence or absence of monetary incentive. The following conclusions are drawn: (1) Ss in monetary incentive groups tend to behave in a manner more statistically advantageous in relation to use of information than Ss in non-incentive groups. (2) The more choice alternatives available, the more likely Ss are to use information. (3) Previous results were confirmed showing that, when faced with the option of making a random choice between equally likely alternatives and using available information, an S is inclined to use the information some of the time, even when it is statistically disadvantageous to do so, i.e., when S could do better by simple guessing behavior.