Research On Individual's Decision-Making Style And Risk Seeking-Risk Aversion

In our daily life, people are always experiencing the process of decision-making anytime. Actually, for the uncertain circumstances that people will face when they make a decision, it is not so easy to make a decision. Once one makes a decision in that situation, it means that he has taken a chance on the future in some way. However, people always wish they can eat the cake and have it.Usually, it is believed that there will be a relatively stable mode when people make a decision. In the light of psychology, there will be a comparatively Decision-making style and Risk seeking-risk aversion. However, among the past researches on individual's Decision-making style and Risk seeking-risk aversion from home and abroad experts, no one has pointed out that whether the individual's Venture decision for the simple Cognitive processing should still comply with their own stable Decision-making style and Risk seeking-risk aversion. This study aims to explore whether individual's Decision-making style and Risk seeking-risk aversion is stable at the time of simple Cognitive processing. Meanwhile, this paper will also attempt to open up a measuring method with experimental condition is controlled strictly to provide fundamental base for developing a new test and assessment method for individual's Decision-making style and Risk seeking-risk aversion. In this kind of measuring method, it tries to make use of the trade-off paradigm of speed and accuracy to predict individual's Decision-making style and Risk seeking-risk aversion.In this research, the subjects will be tested and assessed with the help of MBTI Personality Assessment Inventory, and the mark of the subjects will be recorded on the Thinking (T)-Feeling (F) Dimension. If the subject' mark of T dimension is 16-20, his Decision-making style can be defined as the Analytic. If the subject' mark of F dimension is 16-20, his Decision-making style can be defined as the Heuristic. In this way, all the subjects can be divided into two different groups to accept the test. The experiment, which adopts Speed and Accuracy Rate trade-off Paradigm (SAT Paradigm) and the 2×5 Two Factor Mixed-subjects Design, is carried out to the subjects under the experimental condition whose condition is controlled strictly. The hypothesis is that:if an individual is the analytic Decision-making style, the individual will pay more attentions to the Accuracy Rate (AR). On the contrary, if the individual is the heuristic Decision-making style, he prefers to care about the speed.During the experiment, the experimental sequence is written by the E-prime software, and all the 30 subjects are the students of Southwest University who is gathered by the way of recruiting. The between-subjects factor is equal to the types after the grouping, therefore it has 2 levels:the Analytic and the Heuristic. The within-subjects factor is the intervals from the launch of preparatory signal to the presentation of stimulus, and it will have 5 levels:100ms,300ms,500ms,700ms and 900ms. Every level of intervals will present for 30 times randomly (each of red dot and green dot for 15 times), so there will be 150 experimental treatments in total. During the experiment, the two groups of subjects need to give differential reaction to the red dot and green dot which appear randomly.Both the Reaction time (RT) of choosing and the AR of reaction tested from the subjects will be statistically analyzed by SPSS15.0, and the results are as the following:First, at the level of 5 different kinds of intervals, all RT of the Analytic group is longer than the Heuristic group',but the AR of the Analytic group is higher than the Heuristic group'.Second, the interaction effect between the type of subjects and the interval is remarkable.Third, from the test for simple effect, the effect of grouping factor to RT and AR is indicated as that the RT and AR of the two different groups of subjects is extraordinary distinct at every level of the intervals.Hence, it can reach the following conclusions:First, the individual will seek AR more in the SAT if this individual is the analytic decision-making style; the individual will seek speed more in the SAT if this individual is the heuristic decision-making style.Second, there is no a very accurate method to judge the type of subjects' Risk seeking-risk aversion currently, but from the verification of the SAT experiment, which verifies that people's decision-making style and risk seeking-risk aversion comply with consistent mode when they are proceeding the simple Cognitive processing, it is known that the SAT paradigm can be taken as a kind of method to judge the risk seeking-risk aversion of subjects. However, the AR of the result of this method needs further verification.Third, from the verification of the experiment, the MBTI inventory has a high ecological validity.Forth, as one part of individual's personality, decision-making style and Risk seeking-risk aversion are stable.