Effects of feedback and educational training on maximization in choice tasks: Experimental-game evidence

Compelling evidence exists that behavior is inconsistent with the assumptions of expected-utility maximization. However, if learning occurs, then maximization may take place asymptotically (albeit slowly). But a series of experiments by Herrnstein and his associates show that under very general conditions, feedback and experience lead people away from maximization, rather than toward it-a phenomenon termed "melioration." In this paper, we describe two experiments designed to explore the interactions among cognitive skills, maximization, and feedback. Using students of Economics and Industrial Engineering, we show that clear constructive feedback is a partial substitute for cognitive skills in decision-making.

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