New research from UNIST highlights how social observation significantly influences decision-making behavior, demonstrating that people are more likely to adjust their risk levels based on the perceived preferences of their observers.
People adjust their choices between safe and risky decisions based on their perception of an observer’s opinion, according to new research from the Ulsan National Institute of Science and Technology (UNIST).
Published as a Reviewed Preprint in eLife, the study presents a nuanced understanding of social decision-making. Unlike previous studies suggesting that people universally make riskier choices under observation, this research provides solid evidence of a differentiated adjustment in behavior. It underscores the significant role of beliefs about social peers in shaping decisions.
“Those studies suggest that people actively process information about their social environment when making decisions,” co-author HeeYoung Seon, a graduate student in the Department of Biomedical Engineering at UNIST, said in a news release. “We speculated that people’s beliefs about their observers, which can be shaped by experience, may play a central role in their decision-making process.”
Seon, alongside co-author Dongil Chung, an associate professor in the same department, designed a three-phased gambling task with 43 healthy participants to test their hypothesis. They aimed to explore the concept that people’s decision-making is influenced by their learned perceptions of others.
The Experiment
The participants first made a series of choices between a guaranteed safe payout and a risky option with variable outcomes alone.
In the second phase, they were paired with two other participants and asked to predict their partners’ choices. Unknown to the participants, one partner had a propensity for risk, while the other preferred safety.
Feedback was provided on each guess, allowing the participants to refine their predictions and learn about their partners’ preferences. This setup provided insight into how social cues impact decision making.
In the final phase, the participants made similar choices but were informed that some of their decisions would be observed by one of their partners. The results showed a clear influence of observers on the decisions made.
Key Findings
Supporting previous research, the study found that the participants initially believed others would make riskier choices. Over time, they adjusted their judgments based on feedback, learning about their peers’ true preferences.
When observed by a partner identified as risk-averse, the participants were less likely to choose the risky option. Conversely, risk-prone observers swayed participants toward riskier decisions.
The results reveal that social observation impacts decision-making and that these effects are shaped by the individual’s beliefs about their observer.
Brain Activity and Implications
Additionally, the researchers used blood-oxygen-level dependent (BOLD) signaling during decision-making phases to pinpoint active brain regions.
They identified the temporoparietal junction (TPJ), a region known for social cognition, as being particularly active when participants made choices under observation. This suggests the TPJ plays a role in interpreting and integrating the perceived preferences of others into one’s own decision-making processes.
“In the modern world, almost every choice we make is seen by others,” Chung said in the news release. “In this environment, taking the perspectives of others into account is an essential ability to empathize with one another, make prosocial choices and follow social norms. Our data shed light on the flip side, showing how and why incorrect beliefs about others may lead to more risky or maladaptive behaviors, such as the formation of extremely polarized opinions.”
Significance
The study deepens our understanding of how social contexts and perceived observer preferences influence individual decisions. It highlights the importance of social cognition and its implications for behavior in a socially interconnected world. Such insights are valuable for fields ranging from behavioral economics to psychology and could inform strategies to promote healthier, more informed decision-making in social settings.