Thinking in a foreign language helps economic decision-making

http://www.eurekalert.org/pub_releases/2012-04/uoc-tia042512.php

In a study with implications for businesspeople in a global economy, researchers at the University of Chicago have found that people make more rational decisions when they think through a problem in a non-native tongue.

People are more likely to take favorable risks if they think in a foreign language, the new study showed. "We know from previous research that because people are naturally loss-averse, they often forgo attractive opportunities," said UChicago psychologist Boaz Keysar, a leading expert on communication. "Our new findings demonstrate that such aversion to losses is much reduced when people make decisions in their non-native language."

"A foreign language provides a distancing mechanism that moves people from the immediate intuitive system to a more deliberate mode of thinking," wrote Keysar, professor of psychology at UChicago, in the paper, "The Foreign Language Effect: Thinking in a Foreign Tongue Reduces Decision Biases." The paper, which appears in the current issue of Psychological Science, was co-authored by UChicago graduate students Sayuri Hayakawa and Sun Gyu An.