Stacey Wood

Older adults as adaptive decision makers : Evidence from the Iowa gambling task

Older adults process emotional information differently than younger adults and may demonstrate less of a negativity bias on cognitive tasks. The Iowa Gambling Task designed by A. Bechara, H. Damasio, D. Tranel, and A. R. Damasio (1997) has been used to examine the integration of emotion and cognition in a risky-choice decision task and may give insight into differences in the decision-making strategies in younger and older adults. Eighty-eight younger adults (18-34 years) and 67 older adults (65-88 years) completed the Iowa Gambling Task. Using a theoretical decomposition of the task designed by J. R. Busemeyer and J. C. Stout (2002), the authors found that both groups were successful at solving the task but used very different strategies that reflected each groups strength. For younger adults, that strength was learning and memory. For older adults, that strength was an accurate representation of wins and losses (valence).

Looking at the Sunny Side of Life Age-Related Change in an Event-Related Potential Measure of the Negativity Bias

Studies of the negativity bias have demonstrated that negative information has a stronger influence than positive information in a wide range of cognitive domains. At odds with this literature is extensive work now documenting emotional and motivational shifts that result in a positivity effect in older adults. It remains unclear, however, whether this age-related positivity effect results from increases in processing of positive information or from decreases in processing of negative information. Also unknown is the specific time course of development from a negative bias to an apparently positive one. The present study was designed to investigate the negativity bias across the life span using an event-related potential measure of responding to emotionally valenced images. The results suggest that neural reactivity to negative images declines linearly with age, but responding to positive images is surprisingly age invariant across most of the adult life span.

The Negativity Bias Is Eliminated in Older Adults: Age-Related Reduction in Event-Related Brain Potentials Associated With Evaluative Categorization

Studies of younger adults have found that negative information has a stronger influence than positive information across a wide range of domains. T. A. Ito, J. T. Larsen, N. K. Smith, and J. T. Cacioppo (1998) reported that during evaluative categorization, extreme negative images produced greater brain activity than did equally extreme positive images in younger adults. Older adults have been reported to optimize affect and attend less to negative information. In this article, the negativity bias was examined in 20 older versus 20 younger adults during evaluative categorization, with a focus on brain activity occurring roughly 500 ms after presentation of visual stimuli. Results demonstrated a significant decrease in brain activity to both positive and negative stimuli (p < .05) and an elimination of the negativity bias in older adults.

Numeracy and Medicare Part D: The Importance of Choice and Literacy for Numbers in Optimizing Decision Making for Medicare's Prescription Drug Program

Studies on decision making have come to challenge the idea that having more choice is necessarily better. The Medicare prescription drug program (Part D) has been designed to maximize choice for the consumer but has simultaneously created a highly complex decision task with dozens of options. In this study, in a sample of 121 adults, we examined the impact that increasing choice options has on decision-making abilities in older versus younger adults. Consistent with our hypotheses, we found that participants performed better with less choice versus more choice, and that older adults performed worse than younger adults across conditions. We further examined the role that numeracy may play in making these decisions and the role of more traditional cognitive variables such as working memory, executive functioning, intelligence, and education. Finally, we examined how personality style may interact with cognitive variables and age in decision making. Regression analysis revealed that numeracy is related to performance across the lifespan. When controlling for additional measures of cognitive ability, we found that although age was no longer associated with performance, numeracy remained significant. In terms of decision style, personality characteristics were not related to performance. Our results add to the mounting evidence for the critical role of numeracy in decision making across decision domains and across the lifespan.

Risk-Taking Differences Across the Adult Life Span: A Question of Age and Domain

BACKGROUND Older adults face important risky decisions about their health, their financial future, and their social environment. We examine age differences in risk-taking behaviors in multiple risk domains across the adult life span. METHODS A cross-sectional study was conducted in which 528 participants from 18 to 93 years of age completed the Domain-Specific Risk-Taking (DOSPERT) scale, a survey measuring risk taking in 5 different domains. RESULTS Our findings reveal that risk-taking tendencies in the financial domain reduce steeply in older age (at least for men). Risk taking in the social domain instead increases slightly from young to middle age, before reducing sharply in later life, whereas recreational risk taking reduces more steeply from young to middle age than in later life. Ethical and health risk taking reduce relatively smoothly with age. Our findings also reveal gender differences in risk taking with age. Financial risk taking reduced steeply in later life for men but not for women, and risk taking in the social domain reduced more sharply for women than for men. DISCUSSION We discuss possible underlying causes of the domain-specific nature of risk taking and age.

Bounded Rationality, Emotions and Older Adult Decision Making: Not So Fast and Yet So Frugal

Herbert Simon’s work on bounded rationality has had little impact on researchers studying older adults’ decision making. This omission is surprising, as human constraints on computation and memory are exacerbated in older adults. The study of older adults’ decision-making processes could benefit from employing a bounded rationality perspective, but any such attempt must take into account the role that emotions play in older adults’ information processing, memory, and attention allocation. This is especially the case because older adults show relatively less decrements in performance when tasks are imbedded in or laden with emotional stimuli, and they exhibit a greater tendency to rely on emotional information. We examine recent work on bounded rationality and studies investigating older adults’ utilization of, and attention to, emotional information, with the aim of creating a framework that captures the mechanisms underlying older adults’ decision making.

Choosing the right medicare prescription drug plan: the effect of age, strategy selection, and choice set size.

OBJECTIVE The Medicare Modernization Act of 2003 (better known as Medicare Part D) represents the most important change to Medicare since its inception in the mid-1960s. The large number of drug plans being offered has raised concern over the complex design of the program. The purposes of this article are to examine the effect of age and choice set size (3 vs. 9 drug plans) on decision processes, strategy selection, and decision quality within the Medicare Part D program. METHOD One hundred fifty individuals completed a MouselabWeb study, a computer-based program that allowed us to trace the information acquisition process, designed to simulate the official Medicare Web site. RESULTS The data reveal that participants identified the lowest cost plan only 46% of the time. As predicted, an increase in choice set size (3 vs. 9) was associated with 0.25 times the odds of correctly selecting the lowest cost plan, representing an average loss of

One Fish, Two Fish, Red Fish, Blue Fish Effects of Price Frames, Brand Names, and Choice Set Size on Medicare Part D Insurance Plan Decisions

48.71. Older participants, likewise, tended to make poorer decisions. CONCLUSION The study provides some indication that decision strategy mediates the association between age and choice quality and provides further insight regarding how to better design a choice environment that will improve the performance of older consumers.

Neuropsychological Profiles of Victims of Financial Elder Exploitation at the Los Angeles County Elder Abuse Forensic Center

Because many seniors choose Medicare Part D plans offering poorer coverage at greater cost, the authors examined the effect of price frames, brand names, and choice set size on participants’ ability to choose the lowest cost plan. A 2 × 2 × 2 within-subjects design was used with 126 participants aged 18 to 91 years old. Mouselab, a web-based program, allowed participants to choose drug plans across eight trials that varied using numeric or symbolic prices, real or fictitious drug plan names, and three or nine drug plan options. Results from the multilevel models suggest numeric versus symbolic prices decreased the likelihood of choosing the lowest cost plan (−8.0 percentage points, 95% confidence interval = −14.7 to −0.9). The likelihood of choosing the lowest cost plan decreased as the amount of information increased suggesting that decision cues operated independently and collectively when selecting a drug plan. Redesigning the current Medicare Part D plan decision environment could improve seniors’ drug plan choices.

Geriatricians and Psychologists: Essential Ingredients in the Evaluation of Elder Abuse and Neglect

The current article examines neuropsychological correlates of financial elder exploitation in a sample of older adults who have been documented victims of financial elder exploitation. The purpose of this exploratory study was twofold. First, a subsample of the referrals at the Los Angeles County Elder Abuse Forensic Center (LACEAFC) was compared to community dwelling adults in terms of the specific cognitive domains linked to financial capacity including memory, calculation, and executive functioning. Next, the correlation between presence of neuropsychological data and the likelihood of filing a case with the LA County’s District Attorney office was examined. Twenty-seven LACEAFC cases and 32 controls were assessed. Overall, the forensic center group performed worse than a community-based age-matched control group on the MMSE, calculation, and executive functioning (ps < .01). The presence of neuropsychological data was significantly correlated to an increased likelihood of a case being filed.