Complementary cognitive capabilities, economic decision making, and aging

Adult age differences in value-based decision making

A better understanding of age-related differences in judgment and decision making is important from both theoretical and applied perspectives. In this review, we focus on value-based decisions across adulthood and specifically on how loss aversion (a relatively stronger weight of losses than gains on decisions) and the relative motivational impact of gains and losses may change with aging. In doing so, we will also cover recent findings about the effects of gain or loss incentives on performance in cognitive tasks that involve attention, learning, and remembering. We point out open questions and critical moderating variables for future theorizing and research.

Collaborative learning of new information in older age: a systematic review

Ageing is accompanied by a multitude of changes in cognitive abilities, which in turn affect learning. Learning collaboratively may benefit older adults by negating some of these age-related changes. However, studies on collaborative learning in older age differ in their methodology and findings. This systematic review provides an overview of the current research on collaborative learning in older age, exploring what factors influence collaborative learning in this age group. The titles and abstracts of imported 6629 works were screened, as well as four works added manually, which resulted in 29 studies. These studies were conducted across five countries (Canada, United States, United Kingdom, Switzerland and Belgium) between 1993 and 2023. Most studies were quantitative with a non-randomized (n = 16) design. Of the 29 studies, almost all studied collaboration in pairs (n = 28). The results suggest that the benefits of collaborating in older age may depend on the type of learning material, that familiarity between partners does not affect learning, and that age differences appear to decrease or disappear when older adults are provided with adequate time or trials. In addition, this systematic review identifies several gaps in the literature that future research should investigate further. This study was preregistered prior to its commencement on 21 January 2022. The accepted Stage 1 manuscript, unchanged from the point of in-principle acceptance, may be viewed at https://osf.io/tj4w7/. The data and materials of this study can be found at https://osf.io/8xvqf/.

Effects of Brain Maintenance and Cognitive Reserve on Age-Related Decline in Three Cognitive Abilities

OBJECTIVES

Age-related cognitive changes can be influenced by both brain maintenance (BM), which refers to the relative absence over time of changes in neural resources or neuropathologic changes, and cognitive reserve (CR), which encompasses brain processes that allow for better-than-expected behavioral performance given the degree of life-course-related brain changes. This study evaluated the effects of age, BM, and CR on longitudinal changes over 2 visits, 5 years apart, in 3 cognitive abilities that capture most of age-related variability.

METHODS

Participants included 254 healthy adults aged 20-80 years at recruitment. Potential BM was estimated using whole-brain cortical thickness and white matter mean diffusivity at both visits. Education and intelligence quotient (IQ; estimated with American National Adult Reading Test) were tested as moderating factors for cognitive changes in the 3 cognitive abilities.

RESULTS

Consistent with BM-after accounting for age, sex, and baseline performance-individual differences in the preservation of mean diffusivity and cortical thickness were independently associated with relative preservation in the 3 abilities. Consistent with CR-after accounting for age, sex, baseline performance, and structural brain changes-higher IQ, but not education, was associated with reduced 5-year decline in reasoning (β = 0.387, p = .002), and education was associated with reduced decline in speed (β = 0.237, p = .039).

DISCUSSION

These results demonstrate that both CR and BM can moderate cognitive changes in healthy aging and that the 2 mechanisms can make differential contributions to preserved cognition.

Decoding information about cognitive health from the brainwaves of sleep

Sleep electroencephalogram (EEG) signals likely encode brain health information that may identify individuals at high risk for age-related brain diseases. Here, we evaluate the correlation of a previously proposed brain age biomarker, the "brain age index" (BAI), with cognitive test scores and use machine learning to develop and validate a series of new sleep EEG-based indices, termed "sleep cognitive indices" (SCIs), that are directly optimized to correlate with specific cognitive scores. Three overarching cognitive processes were examined: total, fluid (a measure of cognitive processes involved in reasoning-based problem solving and susceptible to aging and neuropathology), and crystallized cognition (a measure of cognitive processes involved in applying acquired knowledge toward problem-solving). We show that SCI decoded information about total cognition (Pearson's r = 0.37) and fluid cognition (Pearson's r = 0.56), while BAI correlated only with crystallized cognition (Pearson's r = - 0.25). Overall, these sleep EEG-derived biomarkers may provide accessible and clinically meaningful indicators of neurocognitive health.

Self-Continuity

Self-continuity is the subjective sense of connection between one's past and present selves (past-present self-continuity), between one's present and future selves (present-future self-continuity), or among one's past, present, and future selves (global self-continuity). We consider the motivational character of the three forms of self-continuity, their regulatory properties, and the internal or external factors that consolidate them. We also review their consequences for attitudes and judgments or decisions, motivation, intentions and behavior, and psychological and physical health. We further detail the psychological and behavioral benefits of self-discontinuity (i.e., a sense of disconnect among temporal selves). We next turn to the brain regions that are activated synchronously with self-continuity. We consider developmental perspectives on self-continuity, discuss collective self-continuity (along with its consequences and regulatory properties), and elaborate on cultural differences in self-continuity. This inaugural Annual Reviews chapter demonstrates the breadth, excitement, and sense of synergy among self-continuity researchers and points to promising research directions.

Age differences in option choice: Is the option framing effect observed among older adults?

Previous studies reported that consumers choose a higher number of options in subtractive framing (-OF), which delete the unnecessary options from the full model with all options chosen than in additive framing (+OF), which adds options to a simple base model. The purposes of this study are to examine the effect of age on option framing and the differences of product type on the option framing effect using two product scenarios (travel package and medical examination). Participants were 40 younger and 40 older adults. We measured the number of options chosen, total price, choice difficulty, and choice satisfaction. In addition, cognitive functions (coding, symbol search, digit span, arithmetic, and information) were assessed. Results revealed that older and younger adults chose more options in the -OF condition for both the scenarios. For the medical examination, older adults chose more options than did the younger adults in both -OF and +OF conditions. Developmental shift in goals and motivation related to life-span may explain the differences between the age differences.

The psychology of the internet fraud victimization of older adults: A systematic review

Criminals targeting and exploiting older adults in online environments are of great concern. This study systematically retrieved and analyzed articles on the psychological characteristics of older adult victims of online fraud. First, we found that there was no evidence that older adults were more prevalent than other individuals of other ages among online fraud victims, and current researchers have focused more on why older adults are easy targets for fraud (susceptibility to being cheated). Second, research on psychological factors of older adults' susceptibility to online fraud has mainly focused on cognitive function, trust traits, and other personality traits, such as social loneliness, the Big Five personality traits, and self-control. Among them, most researchers claim that the cyber-cheating of older adults may be due to a decline in their cognitive function. However, there has not been a consensus on how cognitive function and physical and mental conditions affect older people who are cheated. Third, techniques (i.e., methods and techniques used by fraudsters) and experience (i.e., familiarity with internet technology or fraud) may be related to the susceptibility of older adults to fraud, and these studies have also not yet generated a consensus supported by reliable data. Based on the above research uncertainties, we propose that fraud prevention and control strategies for older adults should be applied with caution.

Understanding financial literacy and associated factors among adult population in a low-middle income country

This study aims to identify whether demographics, socio-economic factors, the usage of the internet, smartphone and bank, and cultural factor affect Vietnamese adults' financial literacy. A sample of 669 participants participated in the online survey questionnaire (response rate of 89.92%). Multivariate general linear model regression shows that adults of younger age have better skills in cash management, credit management, savings and investment, and financial management compared to older adults. The findings suggest that participants with better income could manage savings and overall finance more effectively. Furthermore, respondents with “Uncertain avoidance” in the culture had better skills in cash management, saving, and investment. Meanwhile, preferring masculinity had higher scores in credit management, insurance, and total scale compared to those preferring femininity. The significant contribution of this study is its usefulness for economic players to have assertive financial strategies and policymakers to enhance the level of financial literacy and provide trustworthy financial guidance.

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The level of financial literacy of Vietnamese adults is at an average level.

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Using financial management applications support higher financial literacy scores.

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People preferring uncertainty avoidance are more financially literate.

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Financial, educational programs are necessary for a sustainable financial life.

Optimal spindle detection parameters for predicting cognitive performance

STUDY OBJECTIVES

Alterations in sleep spindles have been linked to cognitive impairment. This finding has contributed to a growing interest in identifying sleep-based biomarkers of cognition and neurodegeneration, including sleep spindles. However, flexibility surrounding spindle definitions and algorithm parameter settings present a methodological challenge. The aim of this study was to characterize how spindle detection parameter settings influence the association between spindle features and cognition and to identify parameters with the strongest association with cognition.

METHODS

Adult patients (n = 167, 49 ± 18 years) completed the NIH Toolbox Cognition Battery after undergoing overnight diagnostic polysomnography recordings for suspected sleep disorders. We explored 1000 combinations across seven parameters in Luna, an open-source spindle detector, and used four features of detected spindles (amplitude, density, duration, and peak frequency) to fit linear multiple regression models to predict cognitive scores.

RESULTS

Spindle features (amplitude, density, duration, and mean frequency) were associated with the ability to predict raw fluid cognition scores (r = 0.503) and age-adjusted fluid cognition scores (r = 0.315) with the best spindle parameters. Fast spindle features generally showed better performance relative to slow spindle features. Spindle features weakly predicted total cognition and poorly predicted crystallized cognition regardless of parameter settings.

CONCLUSIONS

Our exploration of spindle detection parameters identified optimal parameters for studies of fluid cognition and revealed the role of parameter interactions for both slow and fast spindles. Our findings support sleep spindles as a sleep-based biomarker of fluid cognition.

Effects of Lifestyle Factors on Cognition in Minority Population of Older Adults: A Review

The onset of dementia and Alzheimer's disease (AD) is projected to expand over the next several decades in the United States as the population ages. However, the cognitive health burden is not equally distributed among the population, as Hispanics and African Americans are at higher risk of AD when compared with Non-Hispanic Whites. There is some evidence to indicate that cognitive decline may be associated with lifestyle factors and that interventions in these domains may prevent or delay this decline. These lifestyle factors include social engagement, physical activity, both aerobic and strength training, dietary intake, sleep and stress. This review summarizes, in general, what is known about the relationship between risk factors and cognition and, in particular what is known about this relationship in minority populations. The results show that the relationship between these risk factors and cognitive decline is stronger for some of the factors such as physical activity and dietary intake and weaker for the other factors depending on what is measured and in what populations. It does appear, however, that the studies in minority populations is limited and warrants more targeted research and interventions.

Temporal discounting across adulthood: A systematic review and meta-analysis

A number of developmental theories have been proposed that make differential predictions about the links between age and temporal discounting, or the devaluation of future rewards. Most empirical studies examining adult age differences in temporal discounting have relied on economic intertemporal choice tasks, which pit choosing a smaller, sooner monetary reward against choosing a larger, later one. Although initial studies using these tasks suggested older adults discount less than younger adults, follow-up studies provided heterogeneous, and thus inconclusive, results. Using an open science approach, we test the replicability of adult age differences in temporal discounting by conducting a preregistered systematic literature search and meta-analysis of adult age differences in intertemporal choice tasks. Across 37 cross-sectional studies (Total N = 104,737), a planned meta-analysis found no sizeable relation between age and temporal discounting, r = -0.068, 95% CI [-0.170, 0.035]. We also found little evidence of publication bias or p-hacking. Exploratory analyses of moderators found no effect of research design (e.g., extreme-group vs. continuous age), incentives (hypothetical vs. real rewards), duration of delay (e.g., days, weeks, months, or years), or quantification of discounting behavior (e.g., proportion of immediate choices vs. parameters from computational modeling). Additional analyses of 12 participant-level data sets found little support for a nonlinear relation between age and temporal discounting across adulthood. Overall, the results suggest that younger, middle-aged, and older adults show similar preferences for smaller, sooner over larger, later rewards. We provide recommendations for future empirical work on temporal discounting across the adult life span. (PsycInfo Database Record (c) 2022 APA, all rights reserved).

Evidence that ageing yields improvements as well as declines across attention and executive functions

Many but not all cognitive abilities decline during ageing. Some even improve due to lifelong experience. The critical capacities of attention and executive functions have been widely posited to decline. However, these capacities are composed of multiple components, so multifaceted ageing outcomes might be expected. Indeed, prior findings suggest that whereas certain attention/executive functions clearly decline, others do not, with hints that some might even improve. We tested ageing effects on the alerting, orienting and executive (inhibitory) networks posited by Posner and Petersen's influential theory of attention, in a cross-sectional study of a large sample (N = 702) of participants aged 58-98. Linear and nonlinear analyses revealed that whereas the efficiency of the alerting network decreased with age, orienting and executive inhibitory efficiency increased, at least until the mid-to-late 70s. Sensitivity analyses indicated that the patterns were robust. The results suggest variability in age-related changes across attention/executive functions, with some declining while others improve.

Age-related differences in strategic competition

Understanding how people of different ages decide in competition is a question of theoretical and practical importance. Using an experimental laboratory approach, this research investigates the ability of younger and older adults to think and act strategically with equal or unequal resources. In zero-sum games of resource allocation, younger adults (19-35 years) and older adults (65-81 years) made strategic decisions in competition against opponents of a similar age (Study 1; N = 120) or different age (Study 2; N = 120). The findings highlight people's ability to make good interpersonal decisions in complex scenarios: Both younger and older adults were aware of their relative strength (in terms of material resources) and allocated their resources adaptively. When competing against opponents of a similar age, people's gains were in line with game-theoretic predictions. However, younger adults made superior strategic allocations and won more frequently when competing against older adults. Measures of fluid cognitive and numerical abilities correlated with strategic behavior in interpersonal competition.

Age Influences Loss Aversion Through Effects on Posterior Cingulate Cortical Thickness

Decision-making strategies shift during normal aging and can profoundly affect wellbeing. Although overweighing losses compared to gains, termed "loss aversion," plays an important role in choice selection, the age trajectory of this effect and how it may be influenced by associated changes in brain structure remain unclear. We therefore investigated the relationship between age and loss aversion, and tested for its mediation by cortical thinning in brain regions that are susceptible to age-related declines and are implicated in loss aversion - the insular, orbitofrontal, and anterior and posterior cingulate cortices. Healthy participants (n = 106, 17-54 years) performed the Loss Aversion Task. A subgroup (n = 78) provided structural magnetic resonance imaging scans. Loss aversion followed a curvilinear trajectory, declining in young adulthood and increasing in middle-age, and thinning of the posterior cingulate cortex mediated this trajectory. The findings suggest that beyond a threshold in middle adulthood, atrophy of the posterior cingulate cortex influences loss aversion.

Determinants of role-incongruent knowledge transfer behavior of apprentices and trainers in the context of the German apprenticeship system

What motivates individuals to engage in role-incongruent knowledge transfer? Drawing on role congruity theory, we characterize role-incongruent (“reverse”) knowledge transfer as being based on an incongruity of the functional and social roles of the actors. Further integrating status characteristics theory and relational demography, we propose affect- and cognition-based trust as well as age as determinants of individuals’ engaging in such reverse knowledge transfer. In so doing, we distinguish between the social roles of trainers and apprentices, as these social roles carry implications for which behaviors are regarded as role-congruent or -incongruent. We test the resulting conceptual framework based on individual-level data from 442 participants (338 apprentices and 104 trainers) in multiple organizations within the context of vocational education training. The results largely support our hypotheses: For trainers, affect-based trust in apprentices and own age are positively associated with role-incongruent knowledge seeking, and the latter relationship is positively moderated by apprentice age. For apprentices, affect based trust is positively and cognition-based trust is negatively related to their role-incongruent knowledge sharing, but age has no significant effect. Finally, supplementary analyses document that the antecedents of reverse knowledge transfer differ from those factors that are significantly related to role-congruent knowledge exchange.

Cognitive heterogeneity and complex belief elicitation

The Stochastic Becker-DeGroot-Marschak (SBDM) mechanism is a theoretically elegant way of eliciting incentive-compatible beliefs under a variety of risk preferences. However, the mechanism is complex and there is concern that some participants may misunderstand its incentive properties. We use a two-part design to evaluate the relationship between participants' probabilistic reasoning skills, task complexity, and belief elicitation. We first identify participants whose decision-making is consistent and inconsistent with probabilistic reasoning using a task in which non-Bayesian modes of decision-making lead to violations of stochastic dominance. We then elicit participants' beliefs in both easy and hard decision problems. Relative to Introspection, there is less variation in belief errors between easy and hard problems in the SBDM mechanism. However, there is a greater difference in belief errors between consistent and inconsistent participants. These results suggest that while the SBDM mechanism encourages individuals to think more carefully about beliefs, it is more sensitive to heterogeneity in probabilistic reasoning. In a follow-up experiment, we also identify participants with high and low fluid intelligence with a Raven task, and high and low proclivities for cognitive effort using an extended Cognitive Reflection Test. Although performance on these tasks strongly predict errors in both the SBDM mechanism and Introspection, there is no significant interaction effect between the elicitation mechanism and either ability or effort. Our results suggest that mechanism complexity is an important consideration when using elicitation mechanisms, and that participants' probabilistic reasoning is an important consideration when interpreting elicited beliefs.

Benefits of Experience and Knowledge for Older Adults' Monetary Sequence Preferences

Financial literacy and financial experience may be important for understanding age differences in financial decisionmaking. Older adults generally have more financial experience than younger adults do, and some studies suggest they also have better financial literacy. We investigated associations among age (N = 594, aged 20-88, M _age = 46.48), financial experience, financial literacy, and preferences for receiving larger (versus smaller) amounts of money sooner (versus later). Older age was correlated with preferences for receiving larger amounts of money sooner and smaller amounts later, but this association was no longer significant after accounting for financial experience and financial literacy. Financial experience was the only significant contributor. We discuss implications for improving financial decision-making across adulthood.

Loneliness Interacts With Cognition in Relation to Healthcare and Financial Decision Making Among Community-Dwelling Older Adults

BACKGROUND AND OBJECTIVES

Cognition is a known determinant of healthcare and financial decision making in old age. Social vulnerabilities also might play a role in such decisions; however, the evidence for this is less clear. Here, we examined the association of loneliness with decision making and tested the hypothesis that loneliness is associated with decision making via its interaction with global cognition.

RESEARCH DESIGN AND METHODS

Participants were 1,121 nondemented older adults from the Rush Memory and Aging Project. Healthcare and financial decision making was assessed via a performance-based measure; loneliness was assessed via the De Jong Gierveld Loneliness Scale; and cognition was assessed via a 19-test neuropsychological battery.

RESULTS

In a regression model adjusted for age, sex, and education, global cognition was associated with decision making (B = 2.43, SE = 0.14, p < .001) but loneliness was not (B = -0.04, SE = 0.11, p = .72). However, in a model including the interaction of loneliness with global cognition, the interaction was significant (B = 0.44, SE = 0.20, p = .03), such that the detrimental effect of loneliness on decision making was stronger when cognition was low. In secondary analyses examining the interaction of loneliness with 5 specific cognitive domains, the interaction between loneliness and working memory with decision making was significant (B = 0.35, SE = 0.15, p = .02).

DISCUSSION AND IMPLICATIONS

Our results suggest that loneliness compromises healthcare and financial decision making among older adults with lower global cognition and, more specifically, lower working memory.

The Appraisal Approach to Aging and Emotion: An Integrative Theoretical Framework

To advance our understanding of how emotional experience changes across the adult life span, we propose an integrative theoretical framework: the appraisal approach to aging and emotion (AAAE). AAAE posits that (a) age-related cognitive, motivational, and physical changes fundamentally change the appraisal system in certain ways, and that (b) older adults often deploy appraisal processes in different ways relative to their younger counterparts. As such, we hypothesize that these age-related changes to the appraisal process underlie the finding that older and younger adults tend to experience different emotions. In this paper we integrate findings from the aging literature with appraisal theory, grounding AAAE in theoretical and empirical work relevant to the relationship between aging and appraisal processes. Using our theoretical framework, it is possible to identify critical points of investigation for aging and emotion researchers to further develop our understanding of the proximal-level determinants of age differences in emotion.

Exploring Asymmetric Nexus Between CO2 Emissions, Environmental Pollution, and Household Health Expenditure in China

Objective

This study investigates the nexus between household health expenditure, CO₂ emissions and environmental pollution in China. We analyzed the asymmetric dynamic relationship between CO₂ emissions, environmental pollution and household health expenditure for the period 1990 to 2019 in China.

Methods

This study adopted nonlinear autoregressive distributed lag (NARDL) and Granger causality following the diagnostic test. Furthermore, we applied Dickey-Fuller (ADF), PP unit root tests, Zivot and Andrews test for structural breaks in our analysis. The NARDL is the most suitable econometric technique for estimations, especially if the asymmetric relationship exists among the variables. NARDL technique is capable to explore the dynamic relationship between CO₂ emissions, environmental pollution and household health expenditure.

Results

The empirical results verify the asymmetric nexus between CO₂ emissions, environmental pollution and household health expenditure in the context of China. The outcomes revealed that in the short run and long run positive shocks of CO₂ emissions and environmental pollution positively affecting health expenditure, while negative shocks reduce health spendings. The results also demonstrate bi-directional causality among household health spendings, CO₂ emissions and environmental pollution.

Conclusion

Our results support many previous studies, documenting that CO₂ emissions positively contribute to the amount of household health expenditure, confirming the asymmetric relationship between CO₂ emissions and household health expenditure. The results also confirm the statistically significant and asymmetrically positive relationship between environmental pollution and household health expenditure. This implies that Chinese residents have to bear more household health expenditure, in the case of more CO₂ emissions and a greater amount of environmental pollution.

Brain-Behavior Associations for Risk Taking Depend on the Measures Used to Capture Individual Differences

Maladaptive risk taking can have severe individual and societal consequences; thus, individual differences are prominent targets for intervention and prevention. Although brain activation has been shown to be associated with individual differences in risk taking, the directionality of the reported brain-behavior associations is less clear. Here, we argue that one aspect contributing to the mixed results is the low convergence between risk-taking measures, especially between the behavioral tasks used to elicit neural functional markers. To address this question, we analyzed within-participant neuroimaging data for two widely used risk-taking tasks collected from the imaging subsample of the Basel-Berlin Risk Study (N = 116 young human adults). Focusing on core brain regions implicated in risk taking (nucleus accumbens, anterior insula, and anterior cingulate cortex), for the two tasks, we examined group-level activation for risky versus safe choices, as well as associations between local functional markers and various risk-related outcomes, including psychometrically derived risk preference factors. While we observed common group-level activation in the two tasks (notably increased nucleus accumbens activation), individual differences analyses support the idea that the presence and directionality of associations between brain activation and risk taking varies as a function of the risk-taking measures used to capture individual differences. Our results have methodological implications for the use of brain markers for intervention or prevention.

Neural Correlates of Enhanced Memory for Meaningful Associations with Age

Evidence suggests that age differences in associative memory are attenuated for associations that are consistent with prior knowledge. Such knowledge structures have traditionally been associated with the default network (DN), which also shows reduced modulation with age. In the present study, we investigated whether DN activity and connectivity patterns could account for this age-related effect. Younger and older adults underwent functional magnetic resonance imaging as they learned realistic and unrealistic prices of common grocery items. Both groups showed greater activity in the DN during the encoding of realistic, relative to unrealistic, prices. Moreover, DN activity at encoding and retrieval and its connectivity with an attention control network at encoding were associated with enhanced memory for realistic prices. Finally, older adults showed overactivation of control regions during retrieval of realistic prices relative to younger adults. Our findings suggest that DN activity and connectivity patterns (traditionally viewed as indicators of cognitive failure with age), and additional recruitment of control regions, might underlie older adults' enhanced memory for meaningful associations.

The delay-reward heuristic: What do people expect in intertemporal choice tasks?

Recent research has shown that risk and reward are positively correlated in many environments, and that people have internalized this association as a “risk-reward heuristic”: when making choices based on incomplete information, people infer probabilities from payoffs and vice-versa, and these inferences shape their decisions. We extend this work by examining people’s expectations about another fundamental trade-off — that between monetary reward and delay. In 2 experiments (total N = 670), we adapted a paradigm previously used to demonstrate the risk-reward heuristic. We presented participants with intertemporal choice tasks in which either the delayed reward or the length of the delay was obscured. Participants inferred larger rewards for longer stated delays, and longer delays for larger stated rewards; these inferences also predicted people’s willingness to take the delayed option. In exploratory analyses, we found that older participants inferred longer delays and smaller rewards than did younger ones. All of these results replicated in 2 large-scale pre-registered studies with participants from a different population (total N = 2138). Our results suggest that people expect intertemporal choice tasks to offer a trade-off between delay and reward, and differ in their expectations about this trade-off. This “delay-reward heuristic” offers a new perspective on existing models of intertemporal choice and provides new insights into unexplained and systematic individual differences in the willingness to delay gratification.

The delay-reward heuristic: What do people expect in intertemporal choice tasks?

Recent research has shown that risk and reward are positively correlated in many environments, and that people have internalized this association as a "risk-reward heuristic": when making choices based on incomplete information, people infer probabilities from payoffs and vice-versa, and these inferences shape their decisions. We extend this work by examining people's expectations about another fundamental trade-off-that between monetary reward and delay. In 2 experiments (total N = 670), we adapted a paradigm previously used to demonstrate the risk-reward heuristic. We presented participants with intertemporal choice tasks in which either the delayed reward or the length of the delay was obscured. Participants inferred larger rewards for longer stated delays, and longer delays for larger stated rewards; these inferences also predicted people's willingness to take the delayed option. In exploratory analyses, we found that older participants inferred longer delays and smaller rewards than did younger ones. All of these results replicated in 2 large-scale pre-registered studies with participants from a different population (total N = 2138). Our results suggest that people expect intertemporal choice tasks to offer a trade-off between delay and reward, and differ in their expectations about this trade-off. This "delay-reward heuristic" offers a new perspective on existing models of intertemporal choice and provides new insights into unexplained and systematic individual differences in the willingness to delay gratification.

Neural and behavioral correlates of episodic memory are associated with temporal discounting in older adults

When facing decisions involving trade-offs between smaller, sooner and larger, delayed rewards, people tend to discount the value of future rewards. There are substantial individual differences in this tendency toward temporal discounting, however. One neurocognitive system that may underlie these individual differences is episodic memory, given the overlap in the neural circuitry involved in imagining the future and remembering the past. Here we tested this hypothesis in older adults, including both those that were cognitively normal and those with amnestic mild cognitive impairment (MCI). We found that performance on neuropsychological measures of episodic memory retrieval was associated with temporal discounting, such that people with better memory discounted delayed rewards less. This relationship was specific to episodic memory and temporal discounting, since executive function (another cognitive ability) was unrelated to temporal discounting, and episodic memory was unrelated to risk tolerance (another decision-making preference). We also examined cortical thickness and volume in medial temporal lobe regions critical for episodic memory. Entorhinal cortical thickness was associated with reduced temporal discounting, with episodic memory performance partially mediating this association. The inclusion of MCI participants was critical to revealing these associations between episodic memory and entorhinal cortical thickness and temporal discounting. These effects were larger in the MCI group, reduced after controlling for MCI status, and statistically significant only when including MCI participants in analyses. Overall, these findings suggest that individual differences in temporal discounting are driven by episodic memory function, and that a decline in medial temporal lobe structural integrity may impact temporal discounting.

The Mental Landscape of Imagining Life Beyond the Current Life Span: Implications for Construal and Self-Continuity

Background and Objectives

With rapid advancements in medicine, technology, and nutrition, the future holds the possibility of longer and healthier lives. Despite garnering attention from myriad disciplines, psychological perspectives on life extension are scarce. In three studies, we addressed this gap by exploring key mental characteristics and psychological variables associated with simulating an expanded life span and thus an extremely distant future self.

Research Design and Methods

Three studies investigated the construal (i.e., valence, vividness, and visual perspective) of extremely distant future simulations and the extent to which participants felt connected to their future selves (i.e., self-continuity). Studies 1 and 2 investigated the characteristics of imagery associated with different ages ranging from near the current species maximum (e.g., 120, 150) to more highly hypothetical ages (e.g., 201, 501). Study 3 probed the mental construal of extreme aging among different populations (i.e., life-extension supporters, students, and Mechanical Turk workers). Studies also assessed participants’ general feelings about the ethicality and likelihood of techniques that halt or reverse biological aging to help individuals live beyond the current life expectancy.

Results

Participants in all studies reported being able to vividly imagine expanded aging scenarios (increased chronological, without biological, and aging), but these simulations were characterized by a decreased sense of connection to one’s future self (i.e., self-continuity) compared to a control condition. Temporal distance did not, however, impact ratings of self-continuity when comparing experimental conditions (i.e., imagining one’s self 120 vs 150 or 201 vs 501). Curiously, a sense of self-continuity (when simulating oneself well beyond the current life expectancy) remained intact for individuals who belonged to a community of life-extension supporters. The perceived likelihood and ethicality of extended life-span scenarios also varied significantly across different populations.

Discussion and Implications

The current work is the first to quantify the disconnect between one’s current and extremely distant (i.e., beyond the current life expectancy) future self. Given the behavioral implications of feeling disconnected from one’s future self (e.g., failing to save for retirement or care for one’s own physical health), these findings inform a critical barrier of extended life spans and provide insight into potential remedies (e.g., enhancing the perceived likelihood of living longer). Theoretical implications of hypotheticality and temporal distance, two key dimensions of Construal Level Theory, and their impact on the construal and self-continuity associated with future simulations are also discussed.

Links between autobiographical memory richness and temporal discounting in older adults

When making choices between smaller, sooner rewards and larger, later ones, people tend to discount future outcomes. Individual differences in temporal discounting in older adults have been associated with episodic memory abilities and entorhinal cortical thickness. The cause of this association between better memory and more future-oriented choice remains unclear, however. One possibility is that people with perceptually richer recollections are more patient because they also imagine the future more vividly. Alternatively, perhaps people whose memories focus more on the meaning of events (i.e., are more "gist-based") show reduced temporal discounting, since imagining the future depends on interactions between semantic and episodic memory. We examined which categories of episodic details - perception-based or gist-based - are associated with temporal discounting in older adults. Older adults whose autobiographical memories were richer in perception-based details showed reduced temporal discounting. Furthermore, in an exploratory neuroanatomical analysis, both discount rates and perception-based details correlated with entorhinal cortical thickness. Retrieving autobiographical memories before choice did not affect temporal discounting, however, suggesting that activating episodic memory circuitry at the time of choice is insufficient to alter discounting in older adults. These findings elucidate the role of episodic memory in decision making, which will inform interventions to nudge intertemporal choices.

Neuropsychological deficits in adults age 60 and above with attention deficit hyperactivity disorder

Objective:

Neuropsychological deficits are of major importance in ADHD, yet no previous studies have assessed clinically referred samples of older adults. The authors compared older adults with ADHD (60–75 years) with both younger adults with ADHD (18–45 years) and older healthy controls with regard to various neuropsychological deficits.

Methods:

Well-established tests were used to investigate working memory, inhibition, switching, planning, fluency, and speed of processing. Self-ratings of executive functioning and delay-related behaviors were also included. Both variable-oriented and person-oriented analyses were conducted.

Results:

Older adults with ADHD differed from controls with regard to working memory, inhibition, switching, and delay-related behaviors. In comparison to younger adults with ADHD, they performed at a similar level with regard to working memory and planning, but significantly better with regard to inhibition, switching, fluency, speed of processing, and delay aversion. Despite several significant group differences relative to controls, person-oriented analyses demonstrated that a majority of older adults with ADHD performed within the average range on each test and 20% showed no clear deficit within any neuropsychological domain.

Conclusions:

The results are in line with models of heterogeneity that have identified different neuropsychological subtypes in ADHD as well as a subgroup of patients without any clear neuropsychological deficits. For older adults with ADHD, it will be important to assess their functioning across time as normal aging is related to memory decline and these patients could therefore end up with severe deficits as they grow older, which in turn could have serious negative effects on daily life functioning.

Decision-Making Competence: More Than Intelligence?

Decision-making competence refers to the ability to make better decisions, as defined by decision-making principles posited by models of rational choice. Historically, psychological research on decision-making has examined how well people follow these principles under carefully manipulated experimental conditions. When individual differences received attention, researchers often assumed that individuals with higher fluid intelligence would perform better. Here, we describe the development and validation of individual-differences measures of decision-making competence. Emerging findings suggest that decision-making competence may tap not only into fluid intelligence but also into motivation, emotion regulation, and experience (or crystallized intelligence). Although fluid intelligence tends to decline with age, older adults may be able to maintain decision-making competence by leveraging age-related improvements in these other skills. We discuss implications for interventions and future research.

Cognitive decline reduces household spending among older people

AIM

The purpose of the present study was to investigate the effect of cognitive decline on household spending.

METHODS

The panel data covered the years 2007-2009 and were taken from the Japanese Study of Aging and Retirement, with data extracted for 253 participants aged 65 years and over. Sociodemographic characteristics, functional status, depressive symptoms, and monthly household spending excluding spending for shelter (e.g. mortgage) were used in the analysis. Cognitive function was evaluated by delayed recall and serial 7s and represented by the sum of both scores. Changes in spending and cognitive function scores were calculated by subtracting 2007 scores from 2009 scores. Participants were divided into two groups: cognitive decline and no cognitive decline. The effect of cognitive decline on changes in household spending was estimated.

RESULTS

Although the cognitive decline group had more severe depressive symptoms than the no cognitive decline group in 2009, cognitive decline was the only factor related to change in household spending.

CONCLUSION

The results imply that cognitive decline may cause a decline in household spending in older people. Focusing on changes in household spending behaviour might help detect cognitive impairment in older people.

Age Differences in Intertemporal Choice: The Role of Task Type, Outcome Characteristics, and Covariates

OBJECTIVES

Prior research has revealed age differences in the preferred timing of monetary outcomes, but results are inconsistent across studies. The present study examined the role of task type, outcome characteristics, and a range of theoretically implicated covariates that may contribute to variations in age effects.

METHOD

Two types of intertemporal choice paradigms (temporal discounting and sequence construction) were administered to a diverse life-span sample (n = 287, aged 18-87). The design experimentally manipulated outcome delay (months vs years), amount (hundreds vs thousands), and valence (gain vs loss) while statistically controlling for a range of potential covariates including demographics, affect, personality, time perspective, subjective health, and numeracy.

RESULTS

In the temporal discounting task, no significant age differences were observed and this pattern did not differ by outcome delay, amount, or valence. In the sequence-construction task, age was associated with a preference for sequences of decreasing impact in the gain condition but not in the loss condition, whereas outcome delay and amount did not moderate age effects. Age patterns in discounting and sequences preferences remained unchanged after controlling for covariates.

DISCUSSION

These findings converge with prior studies reporting weak or null effects of age in temporal discounting tasks and suggest that inconsistent results are not due to variations in outcome valence, delay, or amount across studies. Findings also add to the scarce evidence for age differences sequence-preferences. After discussing methodological limitations, we consider implications for future research and practice.

Information use in risky decision making: Do age differences depend on affective context?

The current study focused on the degree to which decision context (deliberative vs. affective) differentially impacted the use of available information about uncertainty (i.e., probability, positive and negative outcome magnitudes, expected value, and variance/risk) when older adults were faced with decisions under risk. In addition, we examined whether individual differences in general mental ability and executive function moderated the associations between age and information use. Participants (N = 96) completed a neuropsychological assessment and the hot (affective) and cold (deliberative) versions of an explicit risk task. Our results did not find a significant Age × Hot/Cold Condition interaction on overall risk-taking. However, we found that older adults were less likely to use the full decision information available regardless of the decision context. This finding suggested more global age differences in information use. Moreover, older adults were less likely to make expected-value sensitive decisions, regardless of the hot/cold context. Finally, we found that low performance on measures of executive functioning, but not general mental ability, appears to be a risk factor for lower information use. This pattern appears in middle age and progressively becomes stronger in older age. The current work provides evidence that common underlying decision processes may operate in risk tasks deemed either affective or deliberative. It further suggests that underlying mechanisms such as information use may be paramount, relative to differences in the affective context. Additionally, individual differences in neuropsychological function may act as a moderator in the tendency to use available information across affective context. (PsycINFO Database Record (c) 2019 APA, all rights reserved).

Neural mechanisms of decision-making in aging

The present review synthesizes findings on decision neuroscience and aging by focusing on decision processes that have been extensively studied in neuroeconomics and critically assessing the driving mechanisms of age-related change. The paper first highlights age-related changes to key brain structures that have been implicated in decision-making, then, reviews specific decision components and discusses investigations of age-related changes to their neural mechanisms. The review also weighs evidence for organic brain aging versus age-related changes to social and psychological factors in mediating age effects. Reviewed findings are discussed in the context of theories and frameworks that have been used to explain trajectories of change in decision-making across adulthood. This article is categorized under: Psychology > Development and Aging Psychology > Reasoning and Decision-Making Neuroscience > Cognition.

Associations of decision making abilities with blood pressure values in older adults

OBJECTIVES

Decision making, key to successful aging, has implications for financial success, physical health, and well being. While poor decision making has been linked with increased risk of mortality, age-related cognitive decline, and dementia, less is known regarding its associations with chronic disease indicators. We investigated the associations of decision making with blood pressure (BP) values [i.e., SBP, mean arterial pressure (MAP), and pulse pressure (PP), separately] in a community-based cohort study of aging.

METHODS

Participants were 908 nondemented older adults (age ∼81 years; 75% women) from the Rush Memory and Aging Project. Decision making was measured using questions designed to simulate materials used in financial and healthcare settings in the real world and yielded a total score and domain-specific health and financial decision making scores. Two seated and one standing BP measurement were taken with all three contributing to average SBP, MAP that is, [SBP + (2 × DBP)]/3, and PP, that is, SBP - DBP. Participants were queried about hypertension status and antihypertension medications were visually inspected and coded. Participants also underwent medical history and cognitive assessments.

RESULTS

In separate multivariable linear regression models, total decision making scores were inversely associated with SBP, MAP, and PP after adjusting for age, sex, education, antihypertension medication use, diabetes, and cumulative cardiovascular disease burden (P values = 0.03). Decision making remained associated with these BP values after additional adjustment for global cognition.

CONCLUSION

Poorer decision making is associated with higher BP values in nondemented older adults.

The empirical relationship between nonstandard economic behaviors

We study the joint distribution of 11 behavioral phenomena in a group of 190 laboratory subjects and compare it to the predictions of existing models as a step in the development of a parsimonious, general model of economic choice. We find strong correlations between most measures of risk and time preference, between compound lottery and ambiguity aversion, and between loss aversion and the endowment effect. Our results support some, but not all attempts to unify behavioral economic phenomena. Overconfidence and gender are also predictive of some behavioral characteristics.

Healthcare and Financial Decision Making and Incident Adverse Cognitive Outcomes among Older Adults

OBJECTIVES

To determine if poorer healthcare and financial decision making forecasts adverse cognitive outcomes in old age. Specifically, we hypothesized that poorer decision making would be associated with an increased risk of incident Alzheimer's dementia, an increased risk of incident mild cognitive impairment (MCI), and a more rapid decline in cognition.

DESIGN

An ongoing prospective observational cohort study of aging (the Rush Memory and Aging Project).

SETTING

The greater Chicago area.

PARTICIPANTS

A total of 952 community-based older adults without dementia at baseline.

MEASUREMENTS

Participants completed a measure of healthcare and financial decision making at baseline and underwent annual standardized evaluations to track clinical status and cognitive functions (global cognition, episodic memory, semantic memory, working memory, perceptual speed, and visuospatial ability).

RESULTS

During up to 9 years of follow-up (M = 5.2 y; standard deviation = 2.7), 156 participants developed Alzheimer's dementia (16.4% of 952), 253 participants developed MCI (33.2% of 760), and each cognitive measure declined (all Ps < .001). In Cox proportional hazards models adjusted for age, sex, and education, poorer decision making was associated with an increased risk of incident Alzheimer's dementia (hazard ratio [HR] = 1.17; 95% confidence interval [CI] = 1.10-1.24; P < .001) and incident MCI (HR = 1.16; 95% CI = 1.10-1.22; P < .001). Further, in linear mixed-effects models, poorer decision making among those who were initially free of cognitive impairment was associated with a more rapid decline in global cognition and four of five specific cognitive domains (all Ps < .05).

CONCLUSION

Our results suggest that poorer healthcare and financial decision making heralds adverse cognitive outcomes in old age. J Am Geriatr Soc 67:1590-1595, 2019.

Cognitive ability and risk aversion: A systematic review and meta analysis

Are highly intelligent people less risk averse? Over the last two decades scholars have argued the existence of a negative relationship between cognitive ability and risk aversion. Although numerous studies support this, the link between cognitive ability and risk aversion has not been found consistently. To shed new light on this topic, a systematic review and meta-analysis was conducted. A total of 97 studies were identified and included for meta-analysis in the domain of gains (N=90, 723), 41 in the mixed domain (N=50, 936), and 12 in the domain of losses (N=4, 544). Results indicate that there exists a weak, but significant negative relationship between cognitive ability and risk aversion in the domain of gains. However, no relationship was observed in the mixed domain or in the domain of losses. Several meta-regressions were performed to investigate the influence of moderator variables. None of the moderator variables were found to consistently influence the relationship between cognitive ability and risk aversion across the domain of gains, mixed and losses. Moreover, no significant difference was observed between males and females across all three domains. In conclusion, this systematic review and meta-analysis provides new evidence that the relationship between cognitive ability and risk aversion is domain specific and not as strong as suggested by some previous studies.

The Shifting Architecture of Cognition and Brain Function in Older Adulthood

Cognitive aging is often described in the context of loss or decline. Emerging research suggests that the story is more complex, with older adults showing both losses and gains in cognitive ability. With increasing age, declines in controlled, or fluid, cognition occur in the context of gains in crystallized knowledge of oneself and the world. This inversion in cognitive capacities, from greater reliance on fluid abilities in young adulthood to increasingly crystallized or semanticized cognition in older adulthood, has profound implications for cognitive and real-world functioning in later life. The shift in cognitive architecture parallels changes in the functional network architecture of the brain. Observations of greater functional connectivity between lateral prefrontal brain regions, implicated in cognitive control, and the default network, implicated in memory and semantic processing, led us to propose the default-executive coupling hypothesis of aging. In this review we provide evidence that these changes in the functional architecture of the brain serve as a neural mechanism underlying the shifting cognitive architecture from younger to older adulthood. We incorporate findings spanning cognitive aging and cognitive neuroscience to present an integrative model of cognitive and brain aging, describing its antecedents, determinants, and implications for real-world functioning.

Individual differences in loss aversion and preferences for skewed risks across adulthood

In a previous study, we found adult age differences in the tendency to accept more positively skewed gambles (with a small chance of a large win) than other equivalent risks, or an age-related positive-skew bias. In the present study, we examined whether loss aversion explained this bias. A total of 508 healthy participants (ages 21-82) completed measures of loss aversion and skew preference. Age was not related to loss aversion. Although loss aversion was a significant predictor of gamble acceptance, it did not influence the age-related positive-skew bias. (PsycINFO Database Record

Influential Cognitive Processes on Framing Biases in Aging

Factors that contribute to overcoming decision-making biases in later life pose an important investigational question given the increasing older adult population. Limited empirical evidence exists and the literature remains equivocal of whether increasing age is associated with elevated susceptibility to decision-making biases such as framing effects. Research into the individual differences contributing to decision-making ability may offer better understanding of the influence of age in decision-making ability. Changes in cognition underlying decision-making have been shown with increased age and may contribute to individual variability in decision-making abilities. This study had three aims; (1) to understand the influence of age on susceptibility to decision-making biases as measured by framing effects across a large, continuous age range; (2) to examine influence of cognitive abilities that change with age; and (3) to understand the influence of individual factors such as gender and education on susceptibility to framing effects. 200 individuals (28-79 years of age) were tested on a large battery of cognitive measures in the domains of executive function, memory and complex attention. Findings from this study demonstrated that cognitive abilities such as strategic control and delayed memory better predicted susceptibility to framing biases than age. The current findings demonstrate that age may not be as influential a factor in decision-making as cognitive ability and cognitive reserve. These findings motivate future studies to better characterize cognitive ability to determine decision-making susceptibilities in aging populations.