Thinking & Decision-Making - IB Psych SL

Thinking

The process of using knowledge and information to make plans, interpret the world, and make predictions about the world in general.

Decision-making

The process of identifying and choosing alternatives based on the values and preferences of the decision-maker.

Problem-solving

Thinking that is directed toward solving specific problems by means of a set of mental strategies

Dual Processing Model

• Founded by Stanovich & West (2000)

• Make popular by Daniel Kahneman in his book Thinking Fast & Slow (2011)  

• States that the processes of thinking and decision making have two basic components:

  • System 1 (Fast)

  • System 2 (Slow)

System 1 (Intuitive) Thinking

• System 1 is automatic, intuitive, and effortless

• Utilizes heuristics

  • Heuristics: a “rule” used to make decisions or form judgments; mental shortcuts that focus on one aspect of a problem and ignore others

• Context dependent

• Prone to error

Heuristics

A “rule” used to make decisions or form judgments; mental shortcuts that focus on one aspect of a problem and ignore others

System 2 (Rational) Thinking

• Slower, conscious, and rational mode of thinking.

  • Considers every possible way to interpret a situation and eliminates options until a solution is met.

• Requires effort.

• Less likely to create feelings of certainty or confidence.

• Allows for transfer of information from one situation to another.

System 1 Reliability

• Prone to errors due to our tendency to make assumptions based on intuition

• Can be useful for experts

  • Thin-slicing: The idea that experts are often able to determine the correct answer to difficult questions immediately.

• Often influenced by biases 

Thin-slicing

The idea that experts are often able to determine the correct answer to difficult questions immediately.

• Often influenced by biases 

Ventral medial prefrontal cortex

A region of the brain that compiles information such as emotional processing, thinking, memory, self-perception, and social cognition to allow for decision-making

Dual Processing Strengths

• Biological evidence

• High reliability of Wason selection task experiments

Dual Processing Limitations

• Overly-simplified - doesn’t explain how emotion & outside factors affect thinking

• Not always clear which system is in effect

System 1 Review

• Remember that System 1 thinking is fast and based on intuition and/or mental shortcuts (heuristics)

Cognitive Bias

Patterns of thinking and decision-making that are consistent, but inaccurate.

Anchoring Bias

The tendency to rely too heavily on the first piece of information offered (the anchor) when making a decision.

• Example: Bartering prices when buying a car

Peak-End Rule

A heuristic in which people judge an experience largely based on how they felt at its peak (i.e., its most intense point) and at its end, rather than based on the total sum or average of every moment of the experience.

• Example: You watch a movie that you like for the most part, but you hate the ending.

• Example: You get a bad grade back at the end of a class, and then use that to judge the overall experience.

Framing Effect

When people react to choices depending on how they are presented or "framed."

• We generally show preference for things that framed in more positive language

• Example: In food: “10 percent fat” vs. “90 percent fat free

Confirmation Bias

• The tendency to seek out information to confirm what you already believe.

• We unconsciously pay more attention to items that reinforce our beliefs and opinions

• Nickersen (1998): confirmation bias is problematic, pervasive and strong.

  • Example: the channels/websites a person gets their “news” from.