Understanding the dynamics of decision-making and choice ...

1 Understanding the dynamics of decision -Making and choice : A Scoping Study of Key psychological Theories to Inform The Design and Analysis of the Panel Study Bryony Beresford and Tricia Sloper DHP 2215 January 2008 Social Policy Research Unit, University of York 2008 All rights reserved. Reproduction of this report by photocopying or electronic means for non-commercial purposes is permitted. Otherwise, no part of this report may be reproduced, adapted, stored in a retrieval system or transmitted by any means, electronic, mechanical, photocopying, or otherwise without prior written permission of the Social Policy Research Unit, University of York.

2 ISBN 978-1-871713-24-4 A CIP catalogue record for this report is available from the British Library. Further copies of this report or any other Social Policy Research Unit publication can be freely obtained by visiting our website: Paper copies can be obtained from: The Publications Office Social Policy Research Unit University of York Heslington York YO10 5DD Understanding the dynamics of decision -making and choice : A scoping study of key psychosocial theories to inform the design and analysis of the Panel Study Abstract At the heart of SPRU s DH-funded programme of research is a qualitative longitudinal Panel Study that aims to examine the choices that older people, disabled young people, disabled adults and their carers make about their services and support; how these choices change over time; and the implications for their experience of independence.

3 To inform the Panel Study and drawing mainly on psychological research, we conducted a review of the main theoretical models of decision -making and choice . Unlike systematic reviews, the review did not set out to identify and evaluate the existing evidence base. Instead the review identifies the main areas of psychological theory and research relevant to choices about welfare services; and assesses the implications of these for the design and analysis of the Panel Study. The review covers the main theories of judgement, decision -making and choice ; the factors such as emotion, which affect choice and decision -making; and evidence on specific decision -making situations, including joint decision -making with another person, making choices on behalf of someone else and decision -making within close relationships.

4 CONTENTS Section 1 Introduction 1 The process of choice 2 Section 2 Theories of Judgement, decision -making and choice 3 The information processing approach to decisions research 3 The adaptive decision -Maker Framework 4 Use of different choice strategies 7 The role of emotion and other goals in the choice -making process 7 The dual process views of thinking 9 The usefulness of the decision -maker framework for

5 The panel study 11 Other heuristic models 12 Making decisions involving risk or uncertainty: prospect theory 14 Risk and uncertainty 15 Prospect theory 15 How risky are we?

6 15 Framing 16 Further loss aversion effects 18 How people structure decisions 19 Implications for the panel study 19 decision -making.

7 The relationships between attitudes and behaviour 20 Theory of Reasoned Action 20 Theory of Planned Behaviour 20 Relevance to panel study 21 Section 3 Factors which Affect choice or decision -making 25 Emotion and choice 25 The role of affect in decision -making 26 Emotion-specific influences on decision -making 27 The role of anticipated emotion 29

8 decision generated emotion 30 Emotion in temporally extended choice 31 Individual differences in emotionality and effects on decision -making 32 Implications for the panel study 32 i Individual differences and choice / decision -making 33 Personality and choice / decision -making 33 choice and cognitive capacity 34 Implications for the panel study

9 37 Section 4 Specific decision -making Situations 39 Making decisions on behalf of someone else 39 Capacity and the law 39 Research on surrogate decision -making 41 Research on parent decision -making 43 Implications for the panel study 46 Shared decision -making 47 Shared decision -making.

10 Advice seeking 47 Implications for the panel study 49 decision -making within close relationships 50 The relevance of research on group decision - Making 50 Dyadic decision -making: the relationship factor 50