Thinking
Which system of thinking is responsible for quick, intuitive decisions based on past experiences? (tips: Such decisions have evolutionary value)
System 1 thinking.
Mental shortcuts that people take when there is no time or resources to analyze the situation thoroughly.
Heuristics
A cognitive bias where an individual depends too heavily on an initial piece of information offered when making decisions.
Anchoring bias
A heuristic of making a choice under risk; describes how the choice depends on whether the problem is formulated in terms of potential gains or in terms of potential losses.
Framing effect
Why do we tend to use system 1 thinking？
We are cognitive misers. People will choose the least effort to achieve the same goal.
What does heuristic have to do with System 1 or System 2 thinking?
Heuristics are part of System 1 thinking. They are quick and work by a "rule of thumb."
What research method is used by Englich and Mussweiler?
A true experiment
Identify the experimental design that was used in Teversky and Kahneman (1981)
Independent measures design
Does dual processing model explain how our thinking and decision making could be influenced by emotion?
No, it is over reductionist. There are some psychologists who argue that there are actually several different systems--not just 2.
Why did Englich and Mussweiler conduct pilot study?
Find a basis for determine anchor
According to the results of Tversky and Kahneman's classic study, which option would be chosen by most people in their study?
Program D. Because people will take risk to avoid the potential losses.
Describe one limitation of dual processing model
e.g.,The definition of system 1 and system 2 is not clear;
When you get your credit card bill every month, there is a minimum payment required - that is, you are not required to pay off the whole amount, but there is a minimum amount that you must pay to avoid penalties. Based on what you know about heuristics, is this helpful to the credit card customer? Why or why not?
Actually, anchoring bias works against the customer in this case. For example, imagine that a customer were just given a bill that said, you owe 1000 dollars on your credit card. You must pay something, but you may pay any amount. Most likely, the person would pay a good amount of that balance, if not pay it off. However, if a minimum payment is stated - let's say, 100 dollars, then it is more likely that they will use this as an anchor and pay less than they would have without the anchor. This means that the credit card company will earn more money in interest, which is a disadvantage to the customer.
Explain how the results from Tversky and Kahneman's study support framing effect?
The only difference between two groups is how the situation is described. Where information was phrased positively, (the number of people who would be saved) people took the certain outcome, (option A) and avoided the possibility of a loss in the less certain option (option B). By contrast, when the information was phrased in terms of people dying (a negative frame) people avoided the certain loss (option C) and took a chance on the less certain option D.