Worth the wait: Children trade off delay and reward in self‐ and other‐benefiting decisions

What's in the Box? Preschoolers Consider Ambiguity, Expected Value, and Information for Future Decisions in Explore-Exploit Tasks

Self-directed exploration in childhood appears driven by a desire to resolve uncertainties in order to learn more about the world. However, in adult decision-making, the choice to explore new information rather than exploit what is already known takes many factors beyond uncertainty (such as expected utilities and costs) into account. The evidence for whether young children are sensitive to complex, contextual factors in making exploration decisions is limited and mixed. Here, we investigate whether modifying uncertain options influences explore-exploit behavior in preschool-aged children (48-68 months). Over the course of three experiments, we manipulate uncertain options' ambiguity, expected value, and potential to improve epistemic state for future exploration in a novel forced-choice design. We find evidence that young children are influenced by each of these factors, suggesting that early, self-directed exploration involves sophisticated, context-sensitive decision-making under uncertainty.

A systematic investigation into the reliability of inter-temporal choice model parameters

Decades of work have been dedicated to developing and testing models that characterize how people make inter-temporal choices. Although parameter estimates from these models are often interpreted as indices of latent components of the choice process, little work has been done to examine their reliability. This is problematic because estimation error can bias conclusions that are drawn from these parameter estimates. We examine the reliability of parameter estimates from 11 prominent models of inter-temporal choice by (a) fitting each model to data from three previous experiments with designs representative of those typically used to study inter-temporal choice, (b) examining the consistency of parameters estimated for the same person based on different choice sets, and (c) conducting a parameter recovery analysis. We find generally low correlations between parameters estimated for the same person from the different choice sets. Moreover, parameter recovery varies considerably between models and the experimental designs upon which parameter estimates are based. We conclude that many parameter estimates reported in previous research are likely unreliable and provide recommendations on how to enhance the reliability of inter-temporal choice models for measurement purposes.

Not Playing by the Rules: Exploratory Play, Rational Action, and Efficient Search

Recent studies suggest children's exploratory play is consistent with formal accounts of rational learning. Here we focus on the tension between this view and a nearly ubiquitous feature of human play: In play, people subvert normal utility functions, incurring seemingly unnecessary costs to achieve arbitrary rewards. We show that four-and-five-year-old children not only infer playful behavior from observed violations of rational action (Experiment 1), but themselves take on unnecessary costs during both retrieval (Experiment 2) and search (Experiments 3A-B) tasks, despite acting efficiently in non-playful, instrumental contexts. We discuss the value of such apparently utility-violating behavior and why it might serve learning in the long run.

Having less means wanting more: Children hold an intuitive economic theory of diminishing marginal utility

Judgments surrounding resource acquisition and valuation are ubiquitous in daily life. How do humans decide what something is worth to themselves or someone else? One important cue to value is that of resource quantity. As described by economists, the principle of diminishing marginal utility (DMU) holds that as resource abundance increases, the value placed on each unit decreases; likewise, when resources become more scarce, the value placed on each unit rises. While prior research suggests that adults make judgments that align with this concept, it is unclear whether children do so. In Study 1 (n = 104), children (ages 5 through 8) were presented with scenarios involving losses or gains to others' resources and predicted the actions and emotions of the individuals involved. Participants made decisions that aligned with DMU, e.g., expecting individuals with fewer resources to expend more effort for an additional resource than individuals with greater resources. In Study 2 (n = 104), children incorporated information about preferences when inferring others' resource valuations, showing how quantity and preference are both included in children's inferences about others' utility. Our results indicate the early emergence of an intuitive economic theory that aligns with an important economic principle. Long before formal learning on this topic, children integrate quantity and preference information to sensibly predict others' resource valuations, with implications for economic decision-making, social preferences, and judgments of partner quality across the lifespan.

Prospection and delay of gratification support the development of calculated reciprocity

Humans frequently benefit others strategically to elicit future cooperation. While such forms of calculated reciprocity are powerful in eliciting cooperative behaviors even among self-interested agents, they depend on advanced cognitive and behavioral capacities such as prospection (representing and planning for future events) and extended delay of gratification. In fact, it has been proposed that these constraints help explain why calculated reciprocity exists in humans and is rare or even absent in other animals. The current study investigated the cognitive foundation of calculated reciprocity by examining its ontogenetic emergence in relation to key aspects of children's cognitive development. Three-to-five-year-old children from the US (N = 72, mostly White, from mixed socioeconomic backgrounds) first completed a cognitive test battery assessing the cognitive capacities hypothesized to be foundational for calculated reciprocity. In a second session, children participated in a calculated reciprocity task in which they could decide how many resources to share with a partner who later had the opportunity to reciprocate (reciprocity condition) and with a partner who could not reciprocate (control condition). Results indicated a steep developmental emergence of calculated reciprocity between 3 and 5 years of age. Further analyses showed that measures of delay of gratification and prospection were important predictors of children's rate of calculated reciprocity, even when controlling for age and after including a measure of verbal ability. By contrast, theory of mind abilities were unrelated to children's reciprocal behavior. This is the first systematic investigation of essential cognitive capacities for calculated reciprocity. We discuss prospection and delay of gratification as two domain-general capacities that are utilized for calculated reciprocity and which could explain developmental as well as species-differences in cooperation.

Preference matters: Knowledge of beneficiary's preference influences children's evaluations of the act of leaving a choice for others

People value indirect prosocial actions that benefit others as byproducts of self-oriented actions. One example of such an action is the act of leaving a choice for others when selecting an item for oneself. In this study, we investigated how knowledge of the beneficiary's preference may influence children's evaluations of such actions. Children (n = 91, 4- to 10-year-olds) and adults (n = 43) were asked to evaluate characters taking a snack for themselves from a set of three items-two identical items and one unique item-in a way that either leaves a choice (two different items) or leaves no choice (two identical items) for the next person (the beneficiary). The beneficiary's preference was systematically manipulated as unknown, preferring the unique item, or preferring the item of which there are two. We found notable developmental changes: Children as young as 4 years of age understand that it is nicer not to take away the only thing others prefer; with age, children increasingly appreciate the value of leaving a diverse choice when the beneficiary's preference is unknown; however, when the beneficiary clearly prefers the item of which there are two, children increasingly think that it is nicer to leave two identical but preferred items than to leave a diverse choice. These findings reveal increasing flexibility and subtlety in children's social evaluation of indirect prosocial actions; their evaluation develops from a mere understanding of the value of preference to a flexible appreciation of both preference and choice.

Decision-making in uncertain contexts: The role of autonomic markers in resolving indecision

Although impulsivity is associated with an increased willingness to make risky decisions, uncertainty intolerance may also contribute to maladaptive decision-making behavior, where individuals neglect to pursue potential rewards even when probabilities for success are in their favor. Several theories have sought to explain the neural systems that guide decision-making in this context, with evidence supporting a role for increased sympathetic activation. However, it remains unclear whether the sympathetic system is associated with greater apprehension in response to uncertain outcomes, or whether it serves to guide behavioral decisions in the context of this uncertainty. Furthermore, although postulated as a within-person process, most research has examined the association between decision behavior and sympathetic activation at the between-person level. We hypothesize that in the context of uncertainty between-person differences in skin conductance will be associated with longer deliberation times; whereas within-person trial-level increases in skin conductance will be associated with a tendency to reject uncertain options. Data were collected from n = 56 children aged 7-11 years, using a computerized card game in which children chose to accept or reject cards of varying point value at varying levels of probability. Skin conductance level (SCL) was recorded throughout the task. No significant between-person associations emerged. However, within-person analyses indicated that momentary deliberation time moderated the association between momentary skin-conductance and decision outcome. This moderation was such that for trials during which the individual deliberated longer (i.e., was more indecisive), a concurrent increase in skin conductance was associated with a significantly higher likelihood of rejecting the card. The within-person nature of these results suggests that skin conductance may help in resolving indecision in the context of uncertainty.

The development of prosocial behavior-from sympathy to strategy

Children act prosocially already in their first years of life. Research has shown that this early prosociality is mostly motivated by sympathy for others, but that, over the course of development, children's prosocial behaviors become more varied, more selective, and more motivationally and cognitively complex. Here, we review recent evidence showing that starting at around age 5, children become gradually capable of strategically using prosocial acts as instrumental means to achieve ulterior goals such as to improve their reputation, to be chosen as social partners, to elicit reciprocity, and to navigate interpersonal obligations. Children's sympathy-based prosociality is thus being extended and reshaped into a behavioral repertoire that enables individuals to pursue and balance altruistic, mutualistic, and selfish motives.

Quantitative or qualitative development in decision making?

A key question in the developmental sciences is whether developmental differences are quantitative or qualitative. For example, does age increase the speed in processing a task (quantitative differences) or does age affect the way a task is processed (qualitative differences)? Until now, findings in the domain of decision making have been based on the assumption that developmental differences are either quantitative or qualitative. In the current study, we took a different approach in which we tested whether development is best described as being quantitative or qualitative. We administered a judgment version and a choice version of a decision-making task to a developmental sample (n_judgment = 109 and n_choice = 137; M_age = 12.5 years, age range = 9-18). The task, the so-called Gambling Machine Task, required decisions between two options characterized by constant gains and probabilistic losses; these characteristics were known beforehand and thus did not need to be learned from experience. Data were analyzed by comparing the fit of quantitative and qualitative latent variable models, so-called multiple indicator multiple cause (MIMIC) models. Results indicated that individual differences in both judgment and choice tasks were quantitative and pertained to individual differences in "consideration of gains," that is, to what extent decisions were guided by gains. These differences were affected by age in the judgment version, but not in the choice version, of the task. We discuss implications for theories of decision making and discuss potential limitations and extensions. We also argue that the MIMIC approach is useful in other domains, for example, to test quantitative versus qualitative development of categorization, reasoning, math, and memory.

Leaving a Choice for Others: Children's Evaluations of Considerate, Socially-Mindful Actions

People value those who act with others in mind even as they pursue their own goals. Across three studies (N = 566; 4- to 6-year-olds), we investigated children's developing understanding of such considerate, socially-mindful actions. By age 6, both U.S. and Chinese children positively evaluate a character who takes a snack for herself in a way that leaves a snack choice for others over a character who leaves no choice (Study 1), but only when the actors had alternative possible actions (Study 2) and when a clear beneficiary was present (Study 3). These results suggest an emerging ability to infer underlying social intentions from self-oriented actions, providing insights into the role of social-cognitive capacities versus culture-specific norms in children's moral evaluations.

Deciding What to Do: Developments in Children’s Spontaneous Monitoring of Cognitive Demands

How do children decide which tasks to take on? Understanding whether and when children begin to monitor cognitive demands to guide task selection is important as children gain increasing independence from adults in deciding which tasks to attempt themselves. In this article, we review evidence suggesting a developmental transition in children's consideration of cognitive demands when making choices about tasks: Although younger children are capable of monitoring cognitive demands to guide task selection, spontaneous monitoring of cognitive demands begins to emerge around 5-7 years. We describe frameworks for understanding when and why children begin to monitor cognitive demands, and propose additional factors that likely influence children's decisions to pursue or avoid cognitively demanding tasks.

Children Delay Gratification for Cooperative Ends

To cooperate effectively, both in small-scale interactions and large-scale collective-action problems, people frequently have to delay gratification (i.e., resist short-term temptations in favor of joint long-term goals). Although delay-of-gratification skills are commonly considered critical in children's social-cognitive development, they have rarely been studied in the context of cooperative decision-making. In the current study, we therefore presented pairs of children (N = 207 individuals) with a modified version of the famous marshmallow test, in which children's outcomes were interdependently linked such that the children were rewarded only if both members of the pair delayed gratification. Children from two highly diverse cultures (Germany and Kenya) performed substantially better than they did on a standard version of the test, suggesting that children are more willing to delay gratification for cooperative than for individual goals. The results indicate that from early in life, human children are psychologically equipped to respond to social interdependencies in ways that facilitate cooperative success.