Navigating Decision Landscapes: The Impact of Principals on Decision-Making Dynamics
Abstract
We explored decision-making dynamics in social systems, referencing the 'herd behavior' from prior studies where individuals follow preceding choices without understanding the underlying reasons. While previous research highlighted a preference for the optimal choice without external influences, our study introduced principals or external guides, adding complexity to the decision-making process. The reliability of these principals significantly influenced decisions. Notably, even occasional trust in an unreliable principal could alter decision outcomes. Furthermore, when a principal's advice was purely random, heightened trust led to more decision errors. Our findings emphasize the need for caution when placing trust in decision-making contexts.
Cite
@article{arxiv.2312.16230,
title = {Navigating Decision Landscapes: The Impact of Principals on Decision-Making Dynamics},
author = {Lu Li and Huangxing Li},
journal= {arXiv preprint arXiv:2312.16230},
year = {2023}
}