Predicting others' choices improves decision-making, reduces risk aversion.
The study looked at how predicting others' choices can affect our own decision-making. It found that when we predict others' choices, we become more rational in our decisions when facing losses, but not gains. Our tendency to avoid changing our preferences did not improve. Overall, we become more risk-averse in our own choices. Interestingly, when our choices influence our predictions for others, we become less risk-averse in predicting their choices. This study introduced real rewards, different ways of presenting information, and simple tasks to better understand these effects.