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Economic consequences of numerical adaptation

(2025) PSYCHOLOGICAL SCIENCE. 36(6). p.407-420
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Abstract
Resource constraints in neural information processing imply that numerical discriminability optimally adapts to the frequency of numerical magnitudes in a decision maker's environment. Here, we tested the economic consequences of efficient numerical range adaptation in representative samples of the United Kingdom and Japan (N = 2,309) and in a replication in Austria and Hungary (N = 607). We exploited natural variation in currency units and combined it with an orthogonal variation in experimental currency units to detect the effect of habitual versus nonhabitual numerical ranges on the incidence of errors in decisions under risk. The results highlight the direct economic importance of numerical adaptation, thus calling into question standard assumptions that choice quantities are perceived without noise.
Keywords
numerical adaptation, resource constraints, money illusion, consistency, errors, RISK-AVERSION, MONEY ILLUSION, DECISION, VALUATION, ATTITUDES

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Citation

Please use this url to cite or link to this publication:

MLA
Garagnani, Michele, and Ferdinand Vieider. “Economic Consequences of Numerical Adaptation.” PSYCHOLOGICAL SCIENCE, vol. 36, no. 6, 2025, pp. 407–20, doi:10.1177/09567976251339195.
APA
Garagnani, M., & Vieider, F. (2025). Economic consequences of numerical adaptation. PSYCHOLOGICAL SCIENCE, 36(6), 407–420. https://doi.org/10.1177/09567976251339195
Chicago author-date
Garagnani, Michele, and Ferdinand Vieider. 2025. “Economic Consequences of Numerical Adaptation.” PSYCHOLOGICAL SCIENCE 36 (6): 407–20. https://doi.org/10.1177/09567976251339195.
Chicago author-date (all authors)
Garagnani, Michele, and Ferdinand Vieider. 2025. “Economic Consequences of Numerical Adaptation.” PSYCHOLOGICAL SCIENCE 36 (6): 407–420. doi:10.1177/09567976251339195.
Vancouver
1.
Garagnani M, Vieider F. Economic consequences of numerical adaptation. PSYCHOLOGICAL SCIENCE. 2025;36(6):407–20.
IEEE
[1]
M. Garagnani and F. Vieider, “Economic consequences of numerical adaptation,” PSYCHOLOGICAL SCIENCE, vol. 36, no. 6, pp. 407–420, 2025.
@article{01KEF43MMJ3NQTZAZBKNEGH6JA,
  abstract     = {{Resource constraints in neural information processing imply that numerical discriminability optimally adapts to the frequency of numerical magnitudes in a decision maker's environment. Here, we tested the economic consequences of efficient numerical range adaptation in representative samples of the United Kingdom and Japan (N = 2,309) and in a replication in Austria and Hungary (N = 607). We exploited natural variation in currency units and combined it with an orthogonal variation in experimental currency units to detect the effect of habitual versus nonhabitual numerical ranges on the incidence of errors in decisions under risk. The results highlight the direct economic importance of numerical adaptation, thus calling into question standard assumptions that choice quantities are perceived without noise.}},
  author       = {{Garagnani, Michele and Vieider, Ferdinand}},
  issn         = {{0956-7976}},
  journal      = {{PSYCHOLOGICAL SCIENCE}},
  keywords     = {{numerical adaptation,resource constraints,money illusion,consistency,errors,RISK-AVERSION,MONEY ILLUSION,DECISION,VALUATION,ATTITUDES}},
  language     = {{eng}},
  number       = {{6}},
  pages        = {{407--420}},
  title        = {{Economic consequences of numerical adaptation}},
  url          = {{http://doi.org/10.1177/09567976251339195}},
  volume       = {{36}},
  year         = {{2025}},
}

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