COG 13 Decision-Making Concepts and Heuristics Flashcards

What are goals?

they are desired outcomes or objectives that guide decision-making and behavior.

What are heuristics? How and why are they used?

they are mental shortcuts or rules of thumb used to make decisions quickly and efficiently, often under conditions of uncertainty.

What are stereotypes? What are they made up of?

it is generalized beliefs about a group of people. They are made up of beliefs, expectations, and assumptions.

What is the representative heuristic?

Judging the likelihood of things based on how well they represent a prototype. Example: assuming someone is a librarian because they are quiet and like books.

What is the availability heuristic?

Judging the likelihood of events based on how easily examples come to mind. Example: thinking plane crashes are common after seeing one on the news.

What are anchoring effects? Give an example.

it occurs when people rely too heavily on the first piece of information (anchor) when making decisions. Example: pricing a car based on the first number mentioned.

What is framing bias? How does it influence decision making?

it occurs when the way information is presented affects decisions. It can make people more risk-averse or risk-seeking depending on whether outcomes are framed as gains or losses.

What is loss aversion bias? How does it influence decision making?

it is the tendency to prefer avoiding losses over acquiring gains. It makes people more cautious and risk-averse when potential losses are highlighted.

What is the ideal decision-making model (i.e., idealized model)?

it assumes people make rational decisions by evaluating all information logically and choosing the optimal outcome.

What is a limitation to the ideal decision-making model?

It assumes people have unlimited time, cognitive resources, and access to all relevant information, which is rarely the case.

What is Expected Utility Theory? How does it influence decision making?

it suggests people choose the option with the highest expected benefit. It assumes rationality in decision-making.

What is Prospect Theory?

it suggests people value gains and losses differently, leading to risk-averse behavior for gains and risk-seeking behavior for losses.

How does the prospect of gains/losses influence decision making?

People are more risk-averse when facing potential gains and more risk-seeking when facing potential losses.

How are low/high probability outcomes weighed?

People tend to overweight low probabilities and underweight high probabilities, influencing risk perception and choices.

What is satisficing? How does it influence decisions?

it involves choosing an option that is 'good enough' rather than optimal, especially under constraints like time or information.

What is the dual-process framework?

A theory describing two types of thinking: Type I (fast, intuitive) and Type II (slow, analytical).

What are Type I & Type II processes?

Type I is fast, automatic, and heuristic-based. Type II is slower, deliberate, and logical.

How do the processes impact our decisions?

Type I allows quick decisions but can lead to biases. Type II is more accurate but slower and resource-intensive.

What does temporal discounting refer to? How does it impact decision making?

it is the tendency to prefer smaller, immediate rewards over larger, future rewards. It can lead to impulsive decisions.

What is the decoy effect? Give an example.

it occurs when the presence of a less attractive option influences preference toward a specific choice. Example: preferring a $7 popcorn over $5 when a $9 option is also present.

What is the conjunction fallacy?

The error of believing the conjunction of two events is more likely than a single event. Example: thinking someone is more likely a feminist and a bank teller than just a bank teller.

What is affective forecasting?

Predicting how one will feel in the future about an event.

What contributes to inaccuracies in affective forecasting?

Focalism, impact bias, and duration neglect contribute to errors in predicting emotional reactions.

What are the potential mechanisms of affective forecasting?

Mechanisms include rationalization, hedonic adaptation, and ease of explanation (e.g., AREA model).

How does emotion influence decision-making?

it can lead to biases, risk aversion, or impulsive decisions. Damage to emotional areas can reduce emotional influence and lead to more consistent decisions.