Decision Making Basics
This term refers to mental shortcuts that help people make decisions quickly.
What are heuristics?
Judging the likelihood of an event based on how easily examples come to mind.
What is the availability heuristic?
The tendency to search for or interpret information in ways that confirm existing beliefs.
What is confirmation bias?
When the way information is presented influences how people make decisions.
What is the framing effect?
This psychologist studied insight and problem-solving in chimpanzees.
Who is Wolfgang Köhler?
This type of decision-making involves carefully evaluating evidence and thinking logically before choosing an option.
What is systematic processing?
Estimating the probability of something based on how similar it is to a typical example or stereotype.
What is the representativeness heuristic?
Relying too heavily on the first piece of information presented when making a decision.
What is the anchoring bias?
The act of overestimating the likelihood of dramatic or memorable events because they are easier to recall.
What is the availability heuristic?
This researcher helped develop prospect theory and studied decision making under uncertainty.
Who is Daniel Kahneman?
This concept refers to choosing the best option after comparing possible alternatives and outcomes.
What is decision-making?
A rule-of-thumb strategy people use to simplify complex decisions.
What is a heuristic?
Continuing to invest in a decision because of the resources one has already spent. (Like a relationship, etc.)
What is the sunk cost fallacy?
A theory explaining how people evaluate potential losses and gains when making decisions.
What is prospect theory?
This researcher often collaborated with Kahneman on research about heuristics and biases.
Who is Amos Tversky?