Depression, anxiety, and personal finance behavior: implications for the classical economic conception of humans as...

Decision-making is a fundamental cognitive process that involves evaluating alternatives and selecting among them. This process can range from simple choices, such as deciding what to wear, to complex decisions, like choosing a major in college or a career path. The complexity of the decision often dictates the approach we use, which can be broadly categorized into two types: automatic and controlled decision-making.
Automatic decision-making is fast, intuitive, and relies on gut feelings...

Social psychology examines how group dynamics, emotions, and cultural influences shape individual actions and decision-making. These elements interact to form behavioral patterns that affect personal choices and social interactions.The Role of Group DynamicsGroups play a crucial role in shaping behavior by reinforcing norms and expectations. Individuals derive a sense of self from group membership, often aligning their behaviors with group norms to maintain social cohesion. For example, an...

The human brain processes information for decision-making using one of two routes: an intuitive system and a rational system (Epstein, 1994; popularized by Kahneman, 2011 as System 1 and System 2, respectively). The intuitive system is quick, impulsive, and operates with minimal effort, relying on emotions or habits to provide cues for what to do next, while the rational system is logical, analytical, deliberate, and methodical. Research in neuropsychology suggests that the brain can only use...

Cognitive-behavioral therapies (CBTs) are grounded in the belief that our thoughts profoundly influence our emotions and actions. Advocates of CBT emphasize three core assumptions: first, that cognitions are identifiable and measurable; second, that they are central to psychological functioning; and third, that irrational or maladaptive beliefs can be replaced with rational and adaptive ones. This transformative approach to therapy has paved the way for specific models such as Albert Ellis's...

Cognition plays a pivotal role in shaping emotional experiences, as demonstrated by Schachter and Singer’s two-factor theory of emotion. According to this model, emotion arises from a combination of physiological arousal and cognitive interpretation. The body’s physiological response to stimuli is ambiguous and only gains emotional significance through cognitive labeling. For instance, an increased heart rate and adrenaline surge while standing near an attractive person may be interpreted as...

As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.Rewards and Costs in RelationshipsRelationship rewards include emotional...