"Money, less problems": Wealth level affects the selection of optimal endpoint in an aiming task with positive and negative outcomes

Abstract

When aiming to a target circle that yields a small gain, people can aim to an optimal endpoint that is modeled based on the participants' endpoint variability and the cost associated with a penalty circle that partly overlaps the target. More recent research, however, has shown that people aim closer to the penalty area than optimal when a large loss is associated with the penalty area. Because participants started the task with no points, this strategy may be an attempt to increase target hits to increase wealth. Of note, research using cognitive decision making tasks shows that participants will avoid losses when they have a positive wealth level. The purpose of the present study is to determine whether people will have "risk seeking" or "risk adverse" strategies when they have different initial wealth levels. If participants are sensitive to their wealth level, they will aim further away from target center if they start with positive wealth than if they start with no wealth. Participants first played a lottery where they received either 0 or 5000pts. The participants then performed 200 trials where they received 100pts for target contact and -600pts for penalty contact. All participants started too close to the penalty area and then shifted their endpoints outward with experience. The participants who began with 5000pts achieved an optimal endpoint by the end of data collection where those who began with 0pts did not. Thus, aiming strategy can be affected by wealth.

Acknowledgments: This research was supported through grants from the Natural Sciences and Engineering Research Council of Canada and the Ontario Ministry of Research and Innovation.