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Maximizing, Satisficing and Their Impacts on Decision-Making Behaviors Maximizing, Satisficing and Their Impacts on Decision-Making Behaviors DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Hye Bin Rim, M.S. Graduate Program in Psychology The Ohio State University 2012 Dissertation Committee: Dr. Thomas E. Nygren, Advisor Dr. Nancy E. Betz Dr. Ellen Peters Copyrighted by Hye Bin Rim 2012 Abstract When making a decision, some individuals have a strong desire towards maximizing decisional outcomes (i.e., maximizing tendency), while others tend to aim for satisfactory outcomes that meet acceptability thresholds (i.e., satisficing tendency). This study is designed to extend the research on individual differences in maximizing and satisficing tendencies. In particular, the purpose of this research is twofold, which includes assessing the construct validity of the Maximization Inventory (MI) and exploring the impact of maximizing versus satisficing tendencies on one’s decision-making behaviors, in particular information acquisition and processing. To evaluate the construct validity of the MI scores empirically, the MI scores were examined with respect to their ability to predict the amount of effort participants exerted during decision-making (Study 1) and their degree of confidence in decision outcomes (Study 1 and 2). Additionally, the relationships between maximizing, satisficing, and decision-making behaviors were investigated in an experience-based gambling task (Study 1), a binary choice task (Study 2), and decision-making competence task (Study 3). Study results provide empirical evidence that the MI scores possess satisfactory construct validity. Additionally, findings from Study 1 and 2 indicate that maximizers tend to search for a large amount of information and to interpret the information conservatively. Maximizers’ information processing style, in turn, moderates the size of ii the decision-experience gap (Study 1) and the degree of information distortion present during the choice process (Study 2). The results from Study 3 suggest that neither maximizing nor satisficing are significantly related to one’s decision-making competence, defined as the ability to follow normative standards of optimal decision-making processes. Findings from the present research suggest that individual differences in the tendencies to maximize and satisfice significantly impact one’s decision-making behavior. Implications of the research results and unanswered questions for future research are discussed. iii Dedicated to my parents, grandmother and my cat iv Acknowledgments First, I am very grateful for the support, encouragement, guidance and endless patience that my advisor, Thomas Nygren, has provided through my graduate career. I was truly fortunate to work with him during my time at Ohio State. I would also like to thank my committee members, Nancy Betz and Ellen Peters, for their time and helpful suggestions with this research. Thanks especially to Nancy Betz for her enthusiastic encouragement and guidance through our collaborations. Further, I would like to thank my friends and colleagues who I met at Ohio State for their help and support over the years. I am especially indebted to my good friends, Pamela Ing and Jonghun Sun, for countless hours helping me cope with the ups and downs of grad school. Last, but certainly not least, I would like to thank my parents and grandmother who have continually encouraged, supported and guided me in everything that I do. Without your unconditional love and support, this would not have been possible. v Vita 2006................................................................B.A. Communication, Yonsei University 2007................................................................M.S. Cognitive Science, Yonsei University 2007 to 2008 ..................................................Graduate Research Associate, Department of Psychology, The Ohio State University 2008 to 2012 ..................................................Graduate Teaching Associate, Department of Psychology, The Ohio State University Publications Rim, H. B., Turner, B. M., Betz, N. E., & Nygren, T. E. (2011) Studies of the dimensionality, correlations, and meaning of measures of the maximizing tendency. Judgment and Decision Making, 6, 565-579. Turner, B. M., Rim, H. B., Betz, N. E., & Nygren, T. E. (2012) The Maximization Inventory. Judgment and Decision Making, 7, 48-60. Fields of Study Major Field: Psychology vi Table of Contents Maximizing, Satisficing and Their Impacts on Decision-Making Behaviors..................... 1 Abstract ............................................................................................................................... ii Acknowledgments............................................................................................................... v Vita ..................................................................................................................................... vi Publications ........................................................................................................................ vi Fields of Study ................................................................................................................... vi Table of Contents .............................................................................................................. vii List of Tables ...................................................................................................................... x List of Figures .................................................................................................................... xi Introduction ......................................................................................................................... 1 What are Maximizers and Satisficers? ............................................................................ 2 Psychological Consequences of Maximizing .................................................................. 4 Measures of Maximizing and Satisficing ........................................................................ 6 Maximizing, Satisficing, and Decision-Making Behaviors .......................................... 11 The Present Research .................................................................................................... 17 vii Study 1: Impacts of Maximizing versus Satisficing Tendencies on Decisions from Experience......................................................................................................................... 21 Overview ....................................................................................................................... 21 Methods ......................................................................................................................... 23 Results ........................................................................................................................... 26 Discussion ..................................................................................................................... 32 Study 2: Maximizing, Satisficing and Predecisional Information Distortion ................... 35 Overview ....................................................................................................................... 35 Methods ......................................................................................................................... 37 Results ........................................................................................................................... 40 Study 3. Maximizing, Satisficing and Decision-Making Competence ............................. 50 Overview ....................................................................................................................... 50 Methods ......................................................................................................................... 51 Results ........................................................................................................................... 55 Discussion ..................................................................................................................... 62 General Discussion ........................................................................................................... 64 Psychometric Properties of the MI ................................................................................ 64 Maximizing, Satisficing, and Decision-making Behaviors ........................................... 67 Conclusion ..................................................................................................................... 73 viii References ......................................................................................................................... 75 Appendix A: Tables and Figures ...................................................................................... 79 ix List of Tables Table 1. The 34-item Maximization Inventory ................................................................. 80 Table 2. Regression results predicting the number of draws ............................................ 81 Table 3. Regression results predicting confidence ratings on knowledge ........................ 82 Table 4. Regression results predicting confidence ratings on satisfactory outcomes ....... 83 Table 5. Summary of the choice proportions and description-experience gaps ............... 84 Table 6. Summary of
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