Proportion dominance in valuing lives: The role of deliberative thinking

Proportion responding (PR) is the preference for proportionally higher gains, such that the same absolute quantity is valued more as the reference group decreases. This research investigated this kind of proportion PR in decisions about saving lives (e.g., saving 10/10 lives is preferred to saving 10/100 lives). The results of two studies suggest that PR does not stem from an overall tendency to choose higher proportions, but rather from faulty deliberative reasoning. In particular, people who display PR are less likely to engage in deliberative reflection as measured by response time, the Process Dissociation Procedure, the Cognitive Reflection Test, a numeracy test, and a task assessing denominator neglect. This association between faulty deliberation and PR was observed only when choosing the highest proportion was non-normative because it came at the expense of absolute gains (e.g., saving 10/10 lives is preferred to saving 11/100 lives). These results help to make sense of discrepant findings in previous research, pertaining to how PR relates to biased reasoning and decision making.

Analytic and heuristic processes in the detection and resolution of conflict

Previous research with the ratio-bias task found larger response latencies for conflict trials where the heuristic- and analytic-based responses are assumed to be in opposition (e.g., choosing between 1/10 and 9/100 ratios of success) when compared to no-conflict trials where both processes converge on the same response (e.g., choosing between 1/10 and 11/100). This pattern is consistent with parallel dualprocess models, which assume that there is effective, rather than lax, monitoring of the output of heuristic processing. It is, however, unclear why conflict resolution sometimes fails. Ratio-biased choices may increase because of a decline in analytical reasoning (leaving heuristic-based responses unopposed) or to a rise in heuristic processing (making it more difficult for analytic processes to override the heuristic preferences). Using the process-dissociation procedure, we found that instructions to respond logically and response speed affected analytic (controlled) processing (C), leaving heuristic processing (H) unchanged, whereas the intuitive preference for large nominators (as assessed by responses to equal ratio trials) affected H but not C. These findings create new challenges to the debate between dual-process and singleprocess accounts, which are discussed.

Constraints to the efficacy of risk management process in entrepreneurial companies

This paper highlights potential factors that affect the degree of efficacy of a formal risk management framework in entrepreneurial organisations. The understanding of entrepreneur’s self-schemas, entrepreneurial organisational culture and working environment is crucial to evaluate the efficacy of a risk management process. This research pointed out two main issues: i) the entrepreneurial decision making process with presence of biases and heuristics in judgement under uncertainty; and ii) the entrepreneurial organisational context that might create constraints to the implementation of a risk management framework.