Decision Making Final Exam Review Sheet Spring, 2025

Flashcards for Decision Making Final Exam Review

Anti-introspectionist theory

A theory that suggests people do not have accurate insight into their own cognitive processes or decision-making strategies; support for this theory comes from research highlighting the limitations of self-report and the influence of unconscious biases.

Contrast effects

The phenomenon where the perception of a stimulus is influenced by comparison with a preceding stimulus; judgments can be altered based on what came before.

Order effects

The impact of the sequence in which information is presented on judgment and decision-making; earlier or later items in a series may be weighted differently.

Probability Estimation

The assessment of the likelihood of an event occurring, which is often subject to biases and heuristics.

Hot hand vs gambler’s fallacy

Two opposing beliefs regarding random sequences; the 'hot hand' fallacy assumes success breeds success, while the 'gambler's fallacy' assumes a reversal is due after a series of similar outcomes.

Coincidence

A surprising concurrence of events perceived as meaningfully related but with no apparent causal connection.

Superstition

Beliefs, unscientific thinking, or irrational practices based on perceived connections between unrelated events.

Illusory Correlation

Perceiving a relationship between variables even when no such relationship exists.

Conjunction fallacy

Occurs when it is assumed that specific conditions are more probable than a single general one.

Risk

The degree of uncertainty associated with a decision, often involving the possibility of loss or harm.

Declining marginal utility

Each additional unit of a good or service provides less additional satisfaction than the previous unit.

Decision analysis

A systematic approach to decision-making that involves identifying and evaluating alternative courses of action.

Choice overload

The state of being overwhelmed by too many options, which can lead to decision paralysis or dissatisfaction.

Choice strategies

The various ways in which individuals approach and make decisions, such as compensatory or non-compensatory strategies.

Valence

The intrinsic attractiveness or averseness of an event, object, or situation.

MAUT (Multi-Attribute Utility Theory)

A decision-making approach that uses a weighted scoring system to evaluate options based on multiple attributes.

Recognition heuristic

A cognitive shortcut where individuals select options they recognize over those they do not.

Emotion and DM

The study of how emotions influence and shape decision-making processes.

Disgust and DM

Focuses on how the emotion of disgust can alter judgments and decisions, particularly in moral and economic contexts.

Emotion and economic decisions

Examines the ways in which emotions impact financial choices and behaviors.

Intertemporal choice

Decisions involving trade-offs between costs and benefits occurring at different points in time.

Discounting the future

The cognitive process of devaluing future outcomes relative to immediate ones.

Delay of gratification

The ability to resist an immediate reward in order to obtain a larger or more enduring reward in the future.

Methods of Self-Control

Strategies used to regulate one’s behavior and impulses in order to achieve long-term goals.

Decisions about future selves

Consideration of how current choices will affect one's future well-being and identity.

Individual differences in discount rates

Variations among people in how much they devalue future outcomes, influencing impulsive behavior.

Factors that influence Risk Perception

The subjective judgment about the degree of risk, influenced by the factors such as dread, control, and knowledge.

The DOSPERT Scale

A psychometric instrument used to measure risk-taking behavior across different domains.

The BART Scale

Stands for Balloon Analogue Risk Task; a measure of risk-taking propensity used in psychological research.

Conspiracy scale

A tool used to measure individual differences in the propensity to believe in conspiracy theories.

Apologist position

A perspective that rationalizes or defends questionable decisions or actions.

Panglossian position

The belief that 'this is the best of all possible worlds,' often used to denote excessive optimism.

Meliorist position

The belief that the world can be made better through human effort.

Approaches to improving j/dm

Strategies and techniques aimed at enhancing judgment and decision-making accuracy and effectiveness.

Psychological and temporal distancing

Cognitive techniques used to create emotional and temporal space between oneself and a decision, helping to reduce biases.