Cue
Information that people use as a signal to lead them to a decision
Decision Tree
- a hierarchical model for decision making
- a strategy to help people make decisions
- Identifies relevant conditions that leads to consequences
- identifies consequences or outcomes based on listed conditions
Computational Capacity
- the maximum amount of computational power that is available to process information
Normative Models
- an established system
- used to reach the optimal decision
Prescriptive Models
- how people should make decisions
- decision optimal given the constrains of time and cognitive resources
Descriptive Models
An account of how people actually make decisions
Three categories of models/frameworks in judgement and decision making
Normative models -
Descriptive Models - how people actually reach a decision (e.g. Heuristics and Biases)
Prescriptive models - recommendation about hoe people reach the optimal decision (e.g. Fast-and-Frugal Approach)
Heuristic
A rule that people use to make decisions
These rules are:
Systematic
Quick to use
Easy to use
Bias
Statistical Definition:
- a systematic distortion of a statistical result
- a statistical preference of one choice over another
Representativeness Heuristic
“An event A is judged more probable than an event B whenever A appears more representative then B” (Kahneman & Tversky, 1972)
Fast-and-Frugal Approach Heuristics I
- fast because we reach a decision quickly
- frugal because simple - does not use a lot of computational power
- heuristics because we want these rules to be systematically used to make decisions
Fast-and-Frugal Approach Assumptions
- heuristics evolved as a result of interactions with the environment
- heuristics are adaptive
- heuristics strike a balance between minimizing computational power and speed, maximizing accuracy
Recognition Heuristic
“If one of two objects is recognized and the other is not, then infer that the recognized object has the higher value with respect to the criterion” (Goldstein & Gigerenzer, 2002, p.76
Dual-Process Theory
For higher level cognitive tasks:
There are two types of processes
There are two corresponding systems
The goal:
Identify the characteristics of each type of process
Type 1 Systems/Process
- no working memory
- autonomous
Type 2 Systems/Processes
- working memory
- not autonomous
Construction of mental models
Cognitive Decoupling
Type 1
Quick
Easy
Automatic
Not conscious processing
Low computational power
Emotional/intuitive
Type 2
slow
controlled
conscious processing
high computational power
intellectual/reasoning
