Information processing in children's choices among bets

Children's information processing of risky choice alternatives was investigated in two studies without using verbal reports. In Study 1, the ability to integrate the probabilities and the payoffs of simple bets was examined using the rating scale methodology. Children's choices among three of those simple bets were recorded also. By cross-classifying the children's choice and rating behavior it was shown that a three-stage developmental hypothesis of decision making is not sufficient. A four-stage hypothesis is proposed. In Study 2, the influence of enlarging the presented number of alternatives from two to three and the influence of the similarity of the alternatives on children's choice probabilities was examined with those bets. Children's choice behavior was probabilistic and was influenced only by enlarging the presented number of alternatives. These results suggest that a Bayesian approach, based on two probabilistic choice models, should not be applied in order to analyze children's choice behavior. The functional measurement approach is, as was demonstrated in Study 1, a powerful implement to further the understanding of the development of decision making