Review of literature of aging
Literature review of Age related constructs on Consumer Decision Making HealthDay News (2013) has reported an interesting research questions about ‘Accumulated knowledge helped seniors outperform young adults when faced with economic choices’ by Randy Dotinga Health day reporter. In the report, Ye Li (2013) an assistant professor of management in the University of California, Riverside, and his new research suggested that: Seniors can be sharper than young adults at making financial decisions, mostly because they can tap into the wealth of knowledge they have accumulated over the ears.
Still, the findings show that older people cannot process information quite as quickly, so it may take them longer to understand complex financial situations. Ye Li said that unlikely seniors not have any advantages then the young people when it comes to the financial decision making, for instance fguring out how to invest their 401 [k]s. (401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts, online definition of Retirement Plan).
There is some fact for types of decision making among enior and young adults, therefore Ye Li pointed that the research is mixed: Older adults seem to be better at some types of decision-making and worse at others. We were better trying to understand when and why older people get better or worse at decision-making. Ye Li explained that people may assume like older people make more wrong decisions than the younger people, the reason behind is that brainpower declines with age.
In the latest study, the researcher questions to 632 participants 332 aged 18-29 years and 300 aged 60-82 years old participants and whose answered online questions. According to the survey questions the participants answered math questions and vocabulary test and they also answered the question about some extent for willingness to take risks and understanding of financial problem such as debt and compound interests. In the result of this research, the researchers found out that the older people “performed as well as or better than younger participants on all measured decision-making tasks. Moreover, their accumulated knowledge appeared to make up for their lack of being as quick at processing questions. From the overall consequence of this research Paul Zak, chairman of the Center for Neuroeconomics Studies at Claremont Graduate University, compliment for the research. And he said that: Overall, the findings are “great news for all of us with gray hair,” because they suggest that accumulated wisdom piles up and more than counterbalances cognitive decline. However, the research is flawed because it surveys people only to age 82. As a result, the authors of this study haven’t really told us much about cognitive decline and decisions, only that most of us can likely no ou through our Moreover Paul Zak noted that “This study has too few participants to have confidence or the 70-plus crowd, but other studies show slow declines, on average. ” In my view of this research people could assume that older people can make a good decision when it comes to a financial decisions because seniors have a many years of experience than younger adults, the result of the study it seems obvious for me.
And also researcher only includes relatively few participants in this study besides they only surveyed constricted amount of participants. And I agree with Paul Zak’s overall comment about this research because this study didn’t prove or explain about cognitive declines between seniors. Citation: Yi L’, Paul Zak Reference: Ye L’, Ph. D. , assistant professor, management, University of California, Riverside; Paul Zak, Ph. D. , chairman and professor, economics, and founding director, Center for Neuroeconomics Studies, Claremont Graduate University, Claremont, Calif. http:// consumer. ealthday. com/senior-citizen-information-31/misc-aging-news-10/study- suggests-aging-doesn-t-dull-decision-making-skills-680529. html [Accessed 01. 11. 2013] I continue my research about aging and I found out some secondary data which is also addresses about the making intuitive decision for older people and oung people. This study shows very interesting conclusion and they proved that age doesn’t necessarily affect decision making (2010). This study hypothesis that, “Many people believe that getting older means losing a mental edge, leading to poor decision-making.
But a new study from North Carolina State University shows that when it comes to making intuitive decisions – using your “gut instincts” – older adults fare as well as their Juniors”. The researcher surveyed group of young adults aged 17-28 and older adults 60-86, and those groups of people who live in the community ot in a nursing home and to look at how the participants fared when making decision based on intuitive evaluation. For instance, researchers asked participants to choose from the overall positive attributes of listed apartments.
Therefore under this circumstance, young and older adults were equally competent for making such decisions. However not every decisions can be made that way says Dr. Thomas Hess, a professor of psychology at NC State and co-author of the study. And he explained more about it as following: “Some decisions require more active deliberation. For example, those decisions that requires people to distinguish pieces of information that are important from those that are unimportant to the decision at hand. ” And when it comes to more complex decision-making, older adults face more challenges than their younger counterparts.
So forth he also explained about how people make intuitive decision and making such decisions are more relevant to their level ot education. He noted “When it comes to making intuitive decisions, like choosing a dish to order from a menu, young and old are similar. Age differences are more likely to crop up when it omes to complex decision-making, such as choosing a health-care plan based on a complex array of information. But even then, it appears that any negative effects of aging will be more evident in those with lower levels of education. In addition he also says that the research result can change the way they present information to the older adults. And Tara Queen, a psychology