A mind for money: Dynamic mindset effects on smart risk taking.

Abstract

Identifying the optimal level of risk taking is an important skill to maximize gains. We tested the potential of the deliberative and implemental mindsets to optimize risk taking to maximize profits, using an incentivized ring toss game. Participants in an implemental mindset showed a dynamic risk-taking pattern and earned higher profits than did participants in the deliberative mindset and the control condition. Also, monetary incentives motivated participants in the deliberative mindset to overcome low expectancies of success; by choosing low risks but achieving high hit rates, deliberative participants' profits were comparable to those in the control group. Gender influenced risk taking but not profits, demonstrating overconfidence in men and underconfidence in women. An increase in achievement motivation in the mindsets, temporal dynamics, and the role of incentives are discussed as possible explanations for these observations.

A self-regulatory approach to rational decisions: The implemental mindset optimizes economic decision making in situations requiring belief updating

“…Further, individuals in a deliberative mindset are supposed to have realistic expectancy-value considerations and realistic evaluations of their own skills (Heckhausen & Gollwitzer, 1987;Gollwitzer, 1990). In line with these expectations, previous research showed that the deliberative mindset can reduce risk-seeking behavior (Dörflinger, Martiny-Hünger, & Gollwitzer, 2017), lead to moderate expectancies about performance in risk choice tasks (Rahn, Jaudas, & Achtziger, 2016b), and result in low levels of overconfidence on general knowledge (Hügelschäfer & Achtziger, 2014).…”

“…These earlier results indicated that information search was more intense and information processing more thorough in the implemental mindset compared to the deliberative mindset. Together with other processes that were instigated by the implemental mindset (e.g., more confidence in one's cognitive skills: Hügelschäfer & Achtziger, ; the induction of a learning mode when making decisions under uncertainty with success/failure feedback: Rahn et al, ; higher self‐esteem and optimism: Taylor & Gollwitzer, ), decision processes were supported in a way that they increased decision performance. Hence, when facing conflicts between Bayes' rule and the reinforcement heuristic, participants in an implemental mindset did better in integrating all available information according to Bayes’ rule and did not rely on a subset of information (win/loss feedback) only what would have resulted in high rates of reinforcement errors.…”

“…Note that some of the studies that included a neutral mindset condition did not find different effects between this condition and the deliberative mindset (e.g., Henderson et al, ). Further, Rahn et al () did not observe any performance differences (monetary profit) between the deliberative mindset and the control condition. Hence, we predicted that rates of reinforcement errors would be lower in the implemental mindset condition compared to the remaining three conditions, that is, the deliberative mindset condition, the neutral mindset condition, and the baseline condition.…”

The role of motivation and volition in economic decisions: Evidence from eye movements and pupillometry

“…Similarly, Harmon‐Jones and Harmon‐Jones () revealed that the chosen option was more positively evaluated in the implemental mindset than in the deliberative mindset. Other examples of mindset effects include less overconfidence in the deliberative mindset (Hügelschäfer & Achtziger, ) and more goal persistence in the implemental mindset (V. Brandstätter & Frank, ; Rahn, Jaudas, & Achtziger, ).…”

“…Some studies have already used the deliberative and implemental mindsets to explore the effects of motivational and volitional processes on decisions (V. Brandstätter, Giesinger, Job, & Frank, 2015;Büttner et al, 2014;Hügelschäfer & Achtziger, 2014;Keller & Gollwitzer, 2017;Li, Hügelschäfer, & Achtziger, 2019;Rahn et al, 2016a;Rahn, Jaudas, & Achtziger, 2016b). For instance, Li et al (2019) observed that rational decision making was increased in the implemental mindset compared with a baseline and a deliberative mindset condition.…”