Rationality: Transitivity and System 2. Individual Differences in Information Processing.

Abstract

Despite a high interest in personal styles of information processing in decision research, measurements of rationality in Dual Process Theories (DPT) have not been confronted with the normative concept of rationality, e.g. obeying the transitivity axiom. Therefore, the first goal of this study is to validate Rational-Experiential Inventory (REI) and Cognitive Reflection Test (CRT) through checking its relation to the transitivity axiom. Assuming that there is a link between scores on DPT measures and the basic principles of logic, the second goal is to test the relation between thinking styles and decision strategies. The following characteristics of strategies are investigated: requirements for trade-offs, maximization vs. satisficing and option-wise vs. attribute-wise information processing, since they refer to the classical concept of rationality, bounded rationality and simple heuristics. It is expected that high scores on Rationality subscale of REI (REI-R) and in CRT is related to compensatory option-wise information processing and maximization or satisficing.Respondents have been given choices between two multi-attribute options. In Study 1, they choose between two apartments. In Study 2, they made the same choices between two abstract options described on dimensions without specific modalities. Options were designed such that the choice indicated which strategy was applied.Both REI-R and CRT have been found to be good predictors of transitive preferences. Respondents who applied compensatory strategies and the maximization criterion scored highly on REI-R and in CRT, whereas those who applied satisficing rule scored highly on REI-R but not in CRT. Attribute-wise information processing led to low scores in both measurements.