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Related Concept Videos

Decision Making: P-value Method01:09

Decision Making: P-value Method

The process of hypothesis testing based on the P-value method includes calculating the P- value using the sample data and interpreting it.
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim  is also stated. These statements can act as null and alternative hypotheses:  a null hypothesis would be a neutral statement while the alternative hypothesis can have a...
Decision Making: Traditional Method01:14

Decision Making: Traditional Method

The process of hypothesis testing based on the traditional method includes calculating the critical value, testing the value of the test statistic using the sample data, and interpreting these values.
First, a specific claim about the population parameter is decided based on the research question and is stated in a simple form. Further, an opposing statement to this claim is also stated. These statements can act as null and alternative hypotheses, out of which a null hypothesis would be a...
Reason and Intuition01:37

Reason and Intuition

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...
The Availability Heuristic01:08

The Availability Heuristic

A heuristic is a general problem-solving framework (Tversky & Kahneman, 1974). You can think of these as mental shortcuts that are used to solve problems. Different types of heuristics are used in different types of situations, and the impulse to use a heuristic occurs when one of five conditions is met (Pratkanis, 1989):
Decision Making01:20

Decision Making

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...
Heuristics01:21

Heuristics

Heuristics are problem-solving strategies that use mental shortcuts to simplify decision-making. Unlike algorithms, which must be followed precisely to achieve a correct result, heuristics offer a general problem-solving framework. They save time and energy but can sometimes lead to less rational decisions.
People often rely on heuristics when faced with an overload of information, limited time, low importance of the decision, limited information, or when a heuristic readily comes to mind. For...

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Related Experiment Video

Updated: May 16, 2026

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations
09:07

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations

Published on: September 16, 2015

Optimal decision rules for HTA under uncertainty: a wider, dynamic perspective.

Martin Forster1, Paolo Pertile

  • 1University of York, York, UK.

Health Economics
|December 11, 2012
PubMed
Summary

This study introduces a new economic framework for health technology assessment, improving resource allocation by integrating adoption, treatment, and research decisions under uncertainty.

Keywords:
dynamic programmingeconomic evaluationreal options

Related Experiment Videos

Last Updated: May 16, 2026

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations
09:07

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations

Published on: September 16, 2015

Area of Science:

  • Health economics
  • Decision analysis
  • Health technology assessment

Background:

  • Health technology assessment (HTA) often faces uncertainty in decision-making.
  • Existing frameworks may not fully integrate adoption, treatment, and research decisions.

Purpose of the Study:

  • To develop a unified economic framework for HTA under uncertainty.
  • To analyze the impact of key dimensions on optimal decision rules for health technologies.
  • To enhance efficiency in healthcare resource allocation.

Main Methods:

  • A two-period economic framework combining real option and decision-theoretic approaches.
  • Modeling adoption, treatment, and research as a single economic project.
  • Analysis of optimal decision rules based on key project dimensions.

Main Results:

  • The integrated framework provides a novel perspective on HTA decision-making.
  • Identifies how different dimensions influence optimal strategies for technology adoption and use.
  • Demonstrates the potential for improved resource allocation efficiency.

Conclusions:

  • The proposed framework offers a substantial contribution to the efficiency of healthcare resource allocation.
  • Integrating diverse decisions within a single economic project is crucial for optimal HTA.
  • Further development could significantly advance HTA practices and economic evaluations.