THE RELATIONSHIP BETWEEN SEARCH STRATEGY AND RISKY CHOICE

This paper describes a study of the information search patterns used b y decision makers to make choices among options with unknown outcomes. The study involved 48 students from Flinders University and Melbourne University who were administered 25 decision trials on which they cou ld win or lose money. Information search behaviour was measured by the DEAN procedure (Ball & Mann, 1991), a process-tracing package for rec ording and analysing information search patterns for problems presente d in decision matrix format. The relationship between information sear ch behaviour and risky choice was examined. It was found that the indi vidual's search processes and strategies are related to the nature of subsequent choices. Individuals who searched little information were m ore likely to choose risky, money-losing options. The findings, which demonstrate consistency between search and choice, indicate that diffe rent parts of the decision-making process are coherent.