Types of Reasoning
Drawing a general conclusion from specific examples.
What is inductive reasoning?
The tendency for people’s existing beliefs to influence their logical reasoning.
What is belief bias?
When people make different decisions based on how information is presented.
What is the framing effect?
This type of decision-making relies on feelings rather than logic.
What is effective decision making?
Continuing a failing plan because of prior investments of time or money.
What is the sunk cost fallacy?
Reasoning based on forming internal representations of possible situations.
What are mental models?
Accepting a conclusion as valid because it seems believable, even if the logic is flawed.
What is belief bias?
Choosing a safer option when a situation is framed as a gain rather than a loss.
What is risk aversion?
The idea that emotions play a key role in guiding decisions.
What is the affect heuristic?
Overestimating one’s own ability to make accurate decisions.
What is overconfidence bias?
This type of reasoning often leads to conclusions that are probable but not guaranteed.
What is inductive reasoning?
When logical reasoning conflicts with personal beliefs, people tend to rely on this instead of logic.
What are beliefs?
The tendency to take more risks when trying to avoid losses.
What is risk-seeking behavior?
This hypothesis suggests emotional signals help guide decision-making, especially in uncertain situations.
What is the somatic marker hypothesis?
The tendency to think we knew the outcome all along after it has already happened.
What is hindsight bias?