Paper ID: 2312.16230

Navigating Decision Landscapes: The Impact of Principals on Decision-Making Dynamics

Lu Li, Huangxing Li

We explored decision-making dynamics in social systems, referencing the 'herd behavior' from prior studies where individuals follow preceding choices without understanding the underlying reasons. While previous research highlighted a preference for the optimal choice without external influences, our study introduced principals or external guides, adding complexity to the decision-making process. The reliability of these principals significantly influenced decisions. Notably, even occasional trust in an unreliable principal could alter decision outcomes. Furthermore, when a principal's advice was purely random, heightened trust led to more decision errors. Our findings emphasize the need for caution when placing trust in decision-making contexts.

Submitted: Dec 25, 2023