Thinking and Decision-making ERQ

What is thinking and decision-making?

A cognitive process used to solve problems, analyze situations, and make decisions.

What is the Dual Process Model?

A theory proposing that two systems of thinking (System 1 and System 2) interact in decision-making.

What is System 1 thinking?

Fast, automatic, intuitive, low-effort, unconscious, and prone to biases.

What is System 2 thinking?

Slow, deliberate, logical, high-effort, conscious, and more accurate.

What biases is System 1 prone to?

Anchoring bias and framing effects, leading to errors in judgment.

What was the aim of Alter & Oppenheimer (2007)?

To investigate how disfluency affects thinking and decision-making.

What was the procedure of Alter & Oppenheimer’s study?

• Participants answered CRT questions in either easy-to-read or hard-to-read font conditions.

What were the results of Alter & Oppenheimer’s study?

Hard-to-read font group answered more accurately; easy-font group relied on intuitive (System 1) answers.

How does Alter & Oppenheimer support the Dual Process Model?

Disfluency triggered System 2 thinking, improving accuracy and reducing cognitive bias.

What is a strength of Alter & Oppenheimer’s study?

High internal validity and clear evidence for System 1 vs. System 2.

What is a limitation of Alter & Oppenheimer’s study?

Low ecological validity and small sample size (40 participants).

What was the aim of Tversky & Kahneman (1974)?

To investigate how anchoring bias affects thinking.

What was the procedure of their anchoring bias study?

Participants estimated a math problem with numbers presented in ascending or descending order.

What were the results of Tversky & Kahneman’s study?

High anchors led to higher estimates; low anchors led to lower estimates.

What does this study show about System 1? (T&K)

Intuitive thinking is influenced by initial values, causing anchoring bias.

What is a limitation of the Tversky & Kahneman study?

Low ecological validity and doesn't account for individual differences like expertise.

How does the Dual Process Model apply to consumer behavior?

System 1 influences impulse buying and anchoring effects in pricing.

How does anchoring bias affect consumer decisions?

High discounts seem more appealing due to automatic System 1 processing.

What are the practical applications of understanding this model?

Helps individuals make better decisions by engaging System 2 thinking.

Why is the Dual Process Model considered reductionist (limitation)?

It oversimplifies complex cognitive processes by dividing them into two systems.

How does the model neglect emotional influences?

It overlooks how emotions can activate or override both systems.

What is problematic about fixed characteristics in the model?

Assumes System 1 is always fast and System 2 always slow, ignoring the role of experience or training.

Why is the idea of systems being strictly separate a limitation?

In real life, thinking is dynamic, and both systems may interact or operate simultaneously.