Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Cognitive ability, not age, predicts risky decisions

02.06.2010
Just because your mother has turned 85, you shouldn't assume you'll have to take over her financial matters. She may be just as good or better than you at making quick, sound, money-making decisions, according to researchers at Duke University.

"It's not age, it's cognition that makes the difference in decision-making," said Scott Huettel, Ph.D., Associate Professor of psychology and neuroscience and director of the Duke Center for Neuroeconomic Studies. He recently led a laboratory study in which participants could gain or lose money based on their decisions.

"Once we accounted for cognitive abilities like memory and processing speed, age had nothing to do with predicting whether an individual would make the best economic decisions on the tasks we assigned," Huettel said.

The study was published in the Psychology and Aging journal, published by the American Psychological Association.

Duke researchers assigned a variety of economic tasks that required different types of risky decisions, so that participants could gain or lose real money. They also tested subjects' cognitive abilities – including both how fast they could process new information and how well they could remember that information. They worked with 54 older adults between 66 and 76 years of age and 58 younger adults between 18 and 35 years of age. .

The researchers used path analysis, a statistical method of finding cause-and-effect relationships, to determine whether age affected the economic decisions directly or whether it had indirect effects, such as age influencing memory, which in turn influenced decisions.

"The standard perspective is that age itself causes people to make more risky, lower-quality decisions – independent of the cognitive changes associated with age," said Huettel, who is also with the Duke-UNC Brain Imaging and Analysis Center. "But that isn't what we found."

The path analyses showed that age-related effects were apparently linked to individual differences in processing speed and memory. When those variables were included in the analysis, age was no longer a significant predictor of decision quality, Huettel said.

On a bell curve of performance, there was overlap between the younger and older groups. Many of the older subjects, aged 66 to 76, made similar decisions to many of the younger subjects (aged 18 to 35). "The stereotype of all older adults becoming more risk-averse is simply wrong," Huettel said.

"Some of the older subjects we studied were able to make better decisions than younger subjects who scored lower on tests of their cognitive abilities," Huettel said. "If I took 20 younger adults and 20 older adults, all of whom were above average on these measures, then on average, you could not tell them apart based on decisions. On the whole, it is true, more older people process slowly and has poorer memory. But there are also older people who do as well as younger people."

Huettel said that the findings suggest strategies to assist people, such as allowing more time for decisions, or presenting data in certain ways to assist people in making decisions.

"Decision scaffolding is the concept that you can give people structure for decision-making that helps them," Huettel said. "We should try to identify ways in which to present information to older adults that gives them scaffolding to make the best choices. If we can reduce the demand on memory or the need to process information very quickly that would be a great benefit to older adults and may push them toward making the same economically beneficial decisions as younger adults."

In reality, younger adults more often work to obtain credit cards with lower interest rates and lower interest rates on mortgages, for example. Huettel said that using surveys that track real-world behavior might help to identify who would benefit from getting information in one manner versus another.

"Some younger adults, too, may benefit from getting their information in a slow, methodical way, while others may not," Huettel said. "We may be able to predict that based on cognition." Self-recognition is important, too, so that if someone knows they process things well over time, they might ask for more time to make a decision rather than making an impulsive decision on the spot, he added.

Other authors included lead author Debra Menninger, who was with Duke but is now at CIGNA in the department of valuation & evaluation informatics, and David J. Madden, Ph.D., from the Duke Center for the Study of Aging and Human Development and the Duke department of psychiatry. The work was supported by NIH grants.

Mary Jane Gore | EurekAlert!
Further information:
http://www.duke.edu

More articles from Studies and Analyses:

nachricht Europe’s Demographic Future. Where the Regions Are Heading after a Decade of Crises
10.08.2017 | Berlin-Institut für Bevölkerung und Entwicklung

nachricht Scientists reveal source of human heartbeat in 3-D
07.08.2017 | University of Manchester

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

Cholesterol-lowering drugs may fight infectious disease

22.08.2017 | Health and Medicine

Meter-sized single-crystal graphene growth becomes possible

22.08.2017 | Materials Sciences

Repairing damaged hearts with self-healing heart cells

22.08.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>