Development in uncertain contexts: An ecologically informed approach to understanding decision-making during adolescence

Adolescence is a period of development in which youth have new opportunities for decision-making, often in situations where they may have little information or experience to guide their choices. Thus, learning to make decisions under uncertainty is a key challenge during adolescence. To date, researchers have applied economics formalisms to understand the processes that support adolescents in making decisions under two distinct forms of uncertainty: economic risk and economic ambiguity. Economic risk is when the probabilities of outcomes are known. Economic ambiguity is when the probabilities of outcomes are unknown or unknowable. This research has led to foundational knowledge about the basic processes involved in adolescent decision-making, but many experimental paradigms that dissociate economic risk and ambiguity rely on monetary or point-based choices. Given that adolescence is a period of development characterized by a changing social environment, it remains unclear whether the processes that adolescents engage during decision-making on monetary or point-based experimental tasks generalize to their day-to-day experiences in the real world. In this brief piece, we explore how developmental research applying economics formalisms can be bolstered by research on youth’s social environments to advance our understanding of decision-making in adolescence. First, we review developmental research by using economic uncertainty paradigms. Next, we highlight research on adolescents’ social environments to provide examples of the day-to-day choices that adolescents face among their peers and in their broader communities. Finally, we propose directions for future research integrating these separate approaches to create a more nuanced, ecologically informed understanding of adolescent decision-making.