Impulsivity, strategy, and exploration in financial decision making under uncertainity

Abstract

This project aims to provide a more nuanced assessment of the decision-making process of individuals with the use of an extended Iowa Gambling Task, consisting of four distinct decks instead of the traditional two types. Additionally, the performance of the participant is mapped onto a graph consisting of two dimensions made up of two spectrums, one being the Impulsivity vs. Strategic Thinking (x-axis) spectrum, the other being the Exploration vs. Exploitation spectrum (y-axis). The data is collected through a mental health app, as the participants take part in the experiment and go through the 100 trials. The raw data is then evaluated in real time and the score is presented to the participant. The placement of the participants’ score onto the dimensions intends to offer deeper insights into impulsivity, adaptability, and risk evaluation done by the participants under uncertainty. The findings of the project have potential for applications in a variety of fields such as behavioral finance, personalized mental health interventions, as well as other mental health developments and more.