Cognitive Processes in Decision Making and Problem Solving

Flashcards covering key concepts related to cognitive processes in decision making and problem solving.

Rational Thinking

The process of using reasoning and logical processes to make decisions, as opposed to being swayed by emotions.

Inductive Reasoning

A type of reasoning that involves drawing general conclusions from specific observations.

Deductive Reasoning

A type of reasoning that involves drawing specific conclusions from general principles or premises.

Utility Maximization

The idea that individuals make decisions by calculating the greatest benefit based on the options available.

Bounded Rationality

The idea that in decision-making, the cognitive limitations and the availability of information restrict the thoroughness of rationality.

Satisficing

A decision-making strategy that entails searching until a satisfactory solution is found, rather than the optimal one.

Heuristic

A mental shortcut that allows for problem-solving and decision-making to be made more quickly and efficiently, though it may result in errors.

Algorithm

A step-by-step procedure or formula for solving a problem, guarantees a correct solution if followed accurately.

Type One Thinking

Fast, automatic, and intuitive cognitive processing that does not require conscious thought.

Type Two Thinking

Slow, deliberate, and systematic cognitive processing that involves conscious thought and analysis.

Prospect Theory

A behavioral economic theory that describes the ways people make decisions based on perceived gains and losses rather than final outcomes.

Problem Space

The entire set of possible states, strategies, and paths available for solving a problem.

Well-defined Problems

Problems that have clear goals, recognized states, and specific rules for reaching the solution.

Ill-defined Problems

Problems that lack clear goals, rules, or pathways to a solution and may require exploration to understand.

Analogical Reasoning

Using the structure of one problem to solve another problem by recognizing their similarities.

Insight

A sudden realization or understanding of a problem's solution, often recognized as an 'aha' moment.

Framing Effect

The cognitive bias that occurs when people decide on options based on how choices are presented rather than on the choices themselves.