How, and how well, do people switch between exploration and exploitation to search for and accumulate resources? We study the decision processes underlying such exploration/exploitation trade‐offs using a novel card selection task that captures the common situation of searching among multiple resources (e.g., jobs) that can be exploited without depleting. With experience, participants learn to switch appropriately between exploration and exploitation and approach optimal performance. We model participants' behavior on this task with random, threshold, and sampling strategies, and find that (...) a linear decreasing threshold rule best fits participants' results. Further evidence that participants use decreasing threshold‐based strategies comes from reaction time differences between exploration and exploitation; however, participants themselves report non‐decreasing thresholds. Decreasing threshold strategies that “front‐load” exploration and switch quickly to exploitation are particularly effective in resource accumulation tasks, in contrast to optimal stopping problems like the Secretary Problem requiring longer exploration. (shrink)

We study the wisdom of the crowd in three sequential decision‐making tasks: the Balloon Analogue Risk Task (BART), optimal stopping problems, and bandit problems. We consider a behavior‐based approach, using majority decisions to determine crowd behavior and show that this approach performs poorly in the BART and bandit tasks. The key problem is that the crowd becomes progressively more extreme as the decision sequence progresses, because the diversity of opinion that underlies the wisdom of the crowd is lost. We also (...) consider model‐based approaches to each task. This involves inferring cognitive models for each individual based on their observed behavior, and using these models to predict what each individual would do in any possible task situation. We show that this approach performs robustly well for all three tasks and has the additional advantage of being able to generalize to new problems for which there are no behavioral data. We discuss potential applications of the model‐based approach to real‐world sequential decision problems and discuss how our approach contributes to the understanding of collective intelligence. (shrink)

The current research investigates how prior preferences affect causal learning. Participants were tasked with repeatedly choosing policies (e.g., increase vs. decrease border security funding) in order to maximize the economic output of an imaginary country and inferred the influence of the policies on the economy. The task was challenging and ambiguous, allowing participants to interpret the relations between the policies and the economy in multiple ways. In three studies, we found evidence of motivated reasoning despite financial incentives for accuracy. For (...) example, participants who believed that border security funding should be increased were more likely to conclude that increasing border security funding actually caused a better economy in the task. In Study 2, we hypothesized that having neutral preferences (e.g., preferring neither increased nor decreased spending on border security) would lead to more accurate assessments overall, compared to having a strong initial preference; however, we did not find evidence for such an effect. In Study 3, we tested whether providing participants with possible functional forms of the policies (e.g., the policy takes some time to work or initially has a negative influence but eventually a positive influence) would lead to a smaller influence of motivated reasoning but found little evidence for this effect. This research advances the field of causal learning by studying the role of prior preferences, and in doing so, integrates the fields of causal learning and motivated reasoning using a novel explore‐exploit task. (shrink)