In the two-stage model, the initial accumulation of payoff information sets the starting point of the diffusion process that accumulates sensory information, a postulate that is well supported by fits to the behavioral data.
Our primary goal in this paper is to examine the effect of explicit payoff information on the activity of LIP neurons while monkeys perform a 2AFC perceptual discrimination task.
Furthermore, the effects of payoff information on discrimination accuracy and reaction times are well described by drift diffusion models that postulate a two-stage accumulation process an initial stage of accumulation about the payoffs followed by a second stage of accumulation of sensory information [1], [38], [39].
Since the acquisition of payoff information is hindered by an interfering task, a fifth prediction can be derived, stating that the presence of a secondary task should interact with the experience of a previous monetary loss in terms of frequency, but not in terms of payoff.
In contrast to the strong effect of payoff information on starting point, fits to the behavioral data indicated that payoff information had little or no effect on the drift rate of the diffusion process.
Besides making lenders responsible for knowing if borrowers can repay loans, the bill would prohibit excessive fees for payoff information or late payments, the financing of points and fees and practices that increase the risk of foreclosure, like balloon payments and encouraging borrowers to default.
Initial processing of payoff information strongly influences the starting point for the accumulation of sensory evidence, while exerting little if any effect on the rate of accumulation of sensory evidence.
Their "drift-rate change hypothesis" corresponds to the cartoon in Figure 8C, in which payoff information exerts its effects via the rate of accumulation of sensory information in the diffusion process, and their "bound-change hypothesis" corresponds to the cartoon in Figure 8D.
Therefore, when payoff information is available, the effect of a loss on Q is stronger.
Diederich and Busemeyer found that the two-stage processing hypothesis accounted best for their psychophysical data, suggesting that payoff information influences choices through an offset in the starting point of the sensory accumulation process.
