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Navigating Decision Landscapes: The Impact of Principals on Decision-Making Dynamics

2023-12-25 · Lu Li, Huangxing Li

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.

📄 PDF Abstract BibTeX arXiv:2312.16230

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