Social observation: Our decisions shift when people are watching

Social observation has a surprising power over our choices. Have you ever noticed how your decisions shift when others are watching? There’s something about the subtle gaze of others that can flip our internal choice compass entirely.

New insights reveal how social observation sways our choices, nudging us toward safer or riskier options depending on how we interpret the expectations of others.

Social observation and decisions

People tend to adjust their choices between a safe and risky decision based on their perception of an observer’s opinion, according to recent research published in the journal Life.

The study challenges the common belief that people universally lean toward riskier choices under observation.

Instead, it presents solid evidence showing that decision-making varies based on who’s observing – a unique adjustment that has been largely overlooked.

How peers influence our behavior

Past research has shown that the presence of others can impact our choices, particularly in teenagers, who often make riskier decisions when they are being observed. This tendency also holds true in adults, who adapt their choices based on social cues.

HeeYoung Seon is a graduate student in the Department of Biomedical Engineering, Ulsan National Institute of Science and Technology (UNIST), South Korea, who co-authored the study with Professor Dongil Chung.

“Those studies suggest that people actively process information about their social environment when making decisions,” said Seon.

“We speculated that people’s beliefs about their observers, which can be shaped by experience, may play a central role in their decision-making process.”

Testing the theory

To investigate, the researchers conducted a three-part experiment with 43 participants who were asked to choose between a safe and a risky option during a gambling task.

First, participants made these choices alone. In the second “learning” phase, they were paired with a “risky” and a “safe” partner, predicting each partner’s likely choice.

By the third ‘observed’ phase, participants made choices while knowing they were being watched by a partner, providing key insights into how social observation shapes decision-making.

The power of social observation

Through this structured task, Seon and Chung observed that participants initially expected others to choose riskier options. However, over time, they accurately learned and anticipated their partners’ choices.

When under observation by a safe partner, participants tended to avoid risky choices. With a risky partner, however, they leaned toward riskier options.

The findings suggest that people’s beliefs about their observers significantly impact their decisions.

Brain’s role in social decision-making

The researchers also examined the neural mechanisms involved, using blood-oxygen-level dependent (BOLD) signaling to study brain activity in solo and observed phases.

The team identified the temporoparietal junction (TPJ) as a key area activated under observation, pointing to its role in social cognitive functions.

“Our study provides further understanding for how the presence of others affects an individual’s decision-making behavior,” said Professor Chung.

“In the modern world, almost every choice we make is seen by others. In this environment, taking the perspectives of others into account is an essential ability to empathize with one another, make prosocial choices and follow social norms.”

“Our data shed light on the flip side, showing how and why incorrect beliefs about others may lead to more risky or maladaptive behaviours, such as the formation of extremely polarised opinions.”

Socially driven decision-making

The study’s findings have far-reaching implications beyond the lab, shedding light on how social observation can shape behavior in everyday contexts.

In settings like workplaces, classrooms, or even social media platforms, the awareness of being observed might subtly steer individuals toward choices they perceive as acceptable or expected by others.

Socially influenced decision-making can encourage conformity and collaboration in group settings. On the other hand, it may also lead to decision-making pitfalls – especially in high-stakes scenarios where overestimating others’ preferences for risk or safety could have unintended consequences.

For instance, in financial environments where risky choices might be rewarded, employees under social scrutiny may feel pressured to engage in riskier behaviors, potentially leading to outcomes that mirror the influences of their perceived “observers.”

Similarly, on social media, where decisions about sharing content or engaging in discussions often unfold in highly visible settings, individuals might adjust their expressions or stances based on what they think aligns with the majority’s view.

The study raises questions about how social observation impacts collective behaviors and emphasizes the importance of creating environments where authentic decision-making can thrive without undue social pressures.

The study is published in the journal eLife.

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