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Related Concept Videos

Decision Making01:20

Decision Making

920
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...
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Decision Making: P-value Method01:09

Decision Making: P-value Method

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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...
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Decision Making: Traditional Method01:14

Decision Making: Traditional Method

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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...
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The Availability Heuristic01:08

The Availability Heuristic

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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):
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Framing Effects03:26

Framing Effects

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Information is everywhere and its presentation—such as how and when items are presented—can impact our perceptions and decisions surrounding the info. This broad concept umbrellas framing effects—influences that occur due to the way information is framed in its appearance, whether it’s purely the order or the specific wording of a message. Let’s take a look at numerous ways in which two versions of something can objectively say the same thing, yet we respond in...
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Reason and Intuition01:37

Reason and Intuition

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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...
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A Psychophysics Paradigm for the Collection and Analysis of Similarity Judgments
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Judgment and Decision Making.

Baruch Fischhoff1, Stephen B Broomell2

  • 1Department of Engineering and Public Policy, and Institute for Politics and Strategy, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213, USA;

Annual Review of Psychology
|July 25, 2019
PubMed
Summary
This summary is machine-generated.

This research explores judgment and decision-making, covering how people predict outcomes, weigh options, and make choices. It also examines individual differences and life-span development to improve decision-making in various fields.

Keywords:
decision makinghistoryjudgmentpreferenceriskuncertainty

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Area of Science:

  • Cognitive Psychology
  • Behavioral Economics
  • Decision Science

Background:

  • The study of judgment and decision making integrates analysis of choices, natural human responses, and interventions.
  • It builds upon intellectual foundations to explore core decision-making elements.

Purpose of the Study:

  • To review recent basic research on judgment, preference, and choice.
  • To examine sources of behavioral heterogeneity, including individual differences and developmental changes.
  • To illustrate applications for improving decision-making in critical sectors.

Main Methods:

  • Literature review of analytical and behavioral research in decision science.
  • Analysis of judgment (outcome prediction), preference (outcome weighting), and choice (decision formation).
  • Examination of individual differences in decision-making competence and life-span developmental changes.

Main Results:

  • Recent research has advanced understanding of judgment, preference, and choice.
  • Individual differences and developmental stages significantly impact decision-making processes.
  • Applications show potential for enhancing decision-making in health, policy, intelligence, and risk management.

Conclusions:

  • Integrating analytical and behavioral research is crucial for advancing decision science.
  • Basic and applied research should mutually inform each other for practical impact.
  • Understanding decision-making processes can lead to significant improvements in individual and organizational outcomes.