The multifold relationship between memory and decision making: An individual-differences study.

Abstract

Several judgment and decision-making tasks are assumed to involve memory functions, but significant knowledge gaps on the memory processes underlying these tasks remain. In a study on 568 adults between 25 to 80 years, hypotheses were tested on the specific relationships between individual differences in working memory, episodic memory, and semantic memory, respectively, and six main components of decision-making competence. In line with the hypotheses, working memory was positively related with the more cognitively-demanding tasks (Resistance to Framing, Applying Decision Rules, and Under/Overconfidence), whereas episodic memory was positively associated with a more experience-based judgment task (Recognizing Social Norms). Furthermore, semantic memory was positively related with two more knowledge-based decision-making tasks (Consistency in Risk Perception and Resistance to Sunk Costs). Finally, the age-related decline observed in some of the decision-making tasks was (partially or totally) mediated by the age-related decline in working memory or episodic memory. These findings are discussed in relation to the functional roles fulfilled by different memory processes in judgment and decision-making tasks.

Pillars of judgment: How memory abilities affect performance in rule-based and exemplar-based judgments.

“…Construct reliabilities in the best fitting model were moderately high for working memory (ˆX X ϭ .72) and acceptable for episodic memory (ˆX X ϭ .38), considering that episodic memory was assessed with different types of material and tests. Overall, these results replicate one key finding from previous individual difference studies: Working memory and episodic memory are moderately correlated Del Missier et al, 2013;Unsworth, 2010).…”

“…In recent theories, working memory is said to consist of activated representations in long-term memory (Oberauer, 2009;Unsworth & Engle, 2007). Evidence from individual difference studies suggests that working memory correlates with performance in long-term memory tasks (Del Missier et al, 2013;Mogle, Lovett, Stawski, & Sliwinski, 2008;Unsworth, 2010). Specifically, working memory may control encoding into and strategic retrieval from long-term memory (Baddeley, Lewis, Eldridge, & Thomson, 1984;Craik, Govoni, Naveh-Benjamin, & Anderson, 1996;Rosen & Engle, 1997;Unsworth, Brewer, & Spillers, 2013).…”

The role of cognitive abilities in decisions from experience: Age differences emerge as a function of choice set size

“…Consequently, decision strategies that are less subject to normal cognitive aging and declines in cognitive abilities may enable older adults to make decisions that are as good as those made by younger adults, despite sizable effects of aging on intellectual functioning. Our results suggest that age differences in decision performance are not observed across the board, but rather vary as a function of the demands imposed by the task (Del Missier et al, 2013;Kovalchik et al, 2005;Li et al, 2013). Taken together, the results suggest that there is no general answer to the question of whether cognitive aging affects decision making.…”

“…Yet, it is unclear to what extent cognitive aging is associated with declining levels of choice performance. The empirical results have been mixed, with some authors observing a profound decline in choice rationality (Agarwal, Driscoll, Gabaix, & Laibson, 2009;Boyle, Yu, Buchman, Laibson, & Bennett, 2011;Tymula et al, 2013) and others observing no decline relative to the decision-making performance of younger adults-or even improvement in specific tasks (Del Missier et al, 2013;Kovalchik et al, 2005;Li, Baldassi, Johnson, & Weber, 2013). Our findings revealed both: Instances of decisions from experience that were not substantially impaired by cognitive aging, and others that were.…”

Aging and Memory

“…More research is needed regarding these links to episodic memory in order to reach consensus about the reasons for these age differences. Recently, Del Missier et al (2013) presented a new approach to examine the relationship between working memory and episodic memory.…”