Decision Making and the Brain
Pre Frontal Lobe damage
Theoretical Reasoning
reasoning directed toward arriving at a belief
Sunk-Cost Fallacy
People make decisions about a current situation based on what they have previously invested in the situation
Belief-Laden Reasoning
topic in which we already ahve an opinion on
Insight
Conjunction Fallacy
people think that two events are more likely to occur together than either individual event

Frequency Format Hypothesis
Our minds evolved to notice how frequently things occur, NOT how likely they are to occur
Reasoning
a mental activity that consists of organizing information or beliefs into a series of steps to reach conclusions
Syllogistic Reasoning
whether a conclusion follows from two statements that we assume to be true
Rational Choice Theory
We make decisions by determining how likely something is to happen, judging the value of the outcome, and then multiiplying the two
Availability Bias
Items that are more readily available in memory are judged as having occurred more frequently
Belief Bias
people’s judgments about whether to accept conclusions depend more on how believable the conclusions are than on whether the arguments are logically valid
Frequency vs. Probability
people are good at estimating frequency, but not probability
Analogical Problem Solving
Solve a problem by finding a similar problem with a known solution and appying that solutino to the current problem
Practical Reasoning
figuring out what to do, or reasoning directed toward action
Moral Thinking and Emotion
Bouncing back and forth between the frontal lobe and limbic system when the decision requires complex thought and not just emotion
Belief-Neutral Reasoning
do not have any beliefs about the topic, just trying to figure out what to think about it
Anticipatory SCR (skin conductance response)
begin to have a response just by thinking about an action without actually performing it
Means-Ends Analysis
A process of searching for the means or steps to reduce the differences between the current situation and the desired
Framing Effects
People give different answers to the same problem dpending on how the problem is phrased (or framed)
Heuristics
fast and efficient strategies that may facilitate decision making but do not guarantee that a solution will be reached
Prospect Theory
people choose to take on risk when evaluating potential losses and avoid risks when evaluating potential gains
Algorithm
a well-defined sequence of procedures or rules that guarantees a solution to a problem
Representativeness Heuristic
A probability judgment by comparing an object or event to a prototype of the object or event