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Related Experiment Video

Updated: Dec 9, 2025

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

Trade-Offs in Choice.

Franklin Shaddy¹, Ayelet Fishbach², Itamar Simonson³

¹Anderson School of Management, University of California, Los Angeles, California 90095, USA;

Annual Review of Psychology

|September 8, 2020

Summary

This summary is machine-generated.

Most choice decisions involve either mixed or extreme solutions. Understanding the psychological drivers behind these choices helps differentiate genuine mistakes from strategic trade-offs.

Keywords:

behavioral decision theory decision making judgment motivation substitution trade-offs

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Online Repetitive Transcranial Magnetic Stimulation of Dorsomedial and Dorsolateral Prefrontal Cortex in Cognition Decision Making, and Cognitive Dissonance

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Published on: December 5, 2025

Area of Science:

Decision Science
Cognitive Psychology
Behavioral Economics

Background:

Numerous theories and terms explain choice trade-offs.
Most trade-offs are resolved using either mixed or extreme solutions.

Purpose of the Study:

To unify seemingly disparate choice phenomena under a single psychological framework.
To identify factors influencing the adoption of mixed versus extreme choice solutions.
To reframe perceived decision-making errors as mixed solutions.

Main Methods:

Systematic review of choice literature.
Analysis of underlying psychological mechanisms in decision-making.
Identification of variables promoting mixed or extreme solutions.

Main Results:

Many unrelated choice phenomena share common psychological underpinnings.
Specific variables systematically shift choice strategies between mixed and extreme.
Opposite choice effects (e.g., balancing vs. highlighting) are linked to these variables.
Several decision "mistakes" can be reinterpreted as mixed solutions.

Conclusions:

A unified framework explains diverse choice behaviors.
Distinguishing between genuine errors and mixed solutions is crucial.
Understanding these dynamics offers insights into consumer and individual decision-making.