Decision Making Under Stress
If an important decision looms but your mind is consumed with the fear that you’ve lost your wallet, better save decision making for later. Multiple studies show thatstress significantly affects decision making. What’s more, men and women react differently to stress.
A 2009 study by Lighthall et al. from the Unversity of Southern California gives a good overview of how sex differences manifest. Researchers had 45 subjects play a balloon game that was really a risk-reward evaluation in disguise: the goal was to win the most money by pumping the balloon. But as the balloon’s value grew, so too did the risk of it popping.
Males and females performed similarly in unstressed scenarios, but when they played after a stressful situation (having their hands dunked in cold water), results shifted. Males responded to stress by taking more risks (12.5% more balloon pumps), while stressed females took fewer risks (21% fewer pumps).
How does the model of risk avoidance transfer to real life? A 2011 study from the University of California Davis looked at one real-life task—investing—with a measurable high-risk activity (trades). Out of 27,000 investors, men made 45% more tradeson their portfolios. The high trading rates led to worse performance, causing male investors to lose more value on their portfolios than female investors.
Further studies must be done to to seek out the possible gender biases in other occupations, but the University of Davis research is an interesting start. As scientists learn more about the processes involved in decision making, there are steps you can take to ensure that your decisions are made clearly and calmly.
A 2009 study by Lighthall et al. from the Unversity of Southern California gives a good overview of how sex differences manifest. Researchers had 45 subjects play a balloon game that was really a risk-reward evaluation in disguise: the goal was to win the most money by pumping the balloon. But as the balloon’s value grew, so too did the risk of it popping.
Males and females performed similarly in unstressed scenarios, but when they played after a stressful situation (having their hands dunked in cold water), results shifted. Males responded to stress by taking more risks (12.5% more balloon pumps), while stressed females took fewer risks (21% fewer pumps).
How does the model of risk avoidance transfer to real life? A 2011 study from the University of California Davis looked at one real-life task—investing—with a measurable high-risk activity (trades). Out of 27,000 investors, men made 45% more tradeson their portfolios. The high trading rates led to worse performance, causing male investors to lose more value on their portfolios than female investors.
Further studies must be done to to seek out the possible gender biases in other occupations, but the University of Davis research is an interesting start. As scientists learn more about the processes involved in decision making, there are steps you can take to ensure that your decisions are made clearly and calmly.
Tips for clear, calm decision making
Think through each consequence before you make a decision. Reward yourself for good choices. And try training with a few Lumosity games. Speed Match is great practice for staying accurate and calm in time-sensitive situations. Or try Route to Sproute, which may help with strategic planning and problem solving. Unlock full access and stay calm and clear-headed in all your decision making.
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