IMPACT OF DIFFERENTIAL COGNITIVE IMPAIRMENT ON EXPLORE-EXPLOIT DECISION-MAKING IN OLDER ADULTS

Abstract

In making decisions, we all must weigh the advantages of exploring new but unknown options and exploiting familiar options. For instance, when purchasing running shoes, do you explore a new brand with few but promising reviews, or do you exploit the same shoes you have used in the past and know work for you? Older adults face important explore-exploit decisions in terms of retirement savings and health treatments. Previous research on younger adults has indicated that people use two strategies to solve these explore-exploit decisions: directed exploration and random exploration. Directed exploration is guided by information-seeking, or choosing an option that will reveal more information. Low willingness to seek information denotes higher ambiguity aversion. Random exploration is guided by random decision variability, or errors in the decision process. This study uses an explore-exploit decision paradigm to measure these two types of exploration behavior in older adults. Findings indicate that cognitively impaired older adults show no random exploration, increased baseline decision noise compared to cognitively healthy older adults, and decreased directed exploration compared to cognitively healthy older adults. This suggests that older adults are making random decisions and could be missing out on favorable new options. Future research can examine how neuropsychological variables predict decision behavior, to eventually help older adults maintain their ability to make informed decisions.