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Related Concept Videos

Decision Making01:20

Decision Making

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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.
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When we are considering a tough choice between two or more attractive options, we often end up actively weighing the pros and cons of each alternative. By reflecting on their advantages and disadvantages, we attempt to fit a complex, subjective decision into an orderly set of criteria. However, research in psychology suggests that this sort of introspective approach might not always yield the most optimal outcomes.1
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The organizational buying process is structured and methodical, involving multiple stakeholders and requiring significant financial commitments. Unlike consumer purchasing, business buyers face complex decisions that demand a deep understanding of technical specifications and careful coordination among departments. These decisions are made within a framework that seeks to balance cost, quality, and efficiency and ensure long-term supplier relationships.
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Decision-making is an important component of human executive function, in which a choice about a course of action or cognition is made from many possibilities. Damage to the inferior parts of the frontal lobes can affect a person's ability to make good decisions. However, while decision-making deficits can have a large impact on one's life, these deficits can be difficult to quantify in the...
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Decision-making Through Net Present Value01:22

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Net Present Value (NPV) is a crucial financial tool that helps organizations make informed decisions about investments and projects by comparing the present value of cash inflows with cash outflows. As a critical capital budgeting tool, NPV accounts for the time value of money, making it an essential method for evaluating long-term investments.
NPV serves multiple purposes in decision-making:
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Decision Making: P-value Method01:09

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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.
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Related Experiment Video

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Introspection Illusion: Reason-Analysis Impairs Decision-Making
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Information gerrymandering and undemocratic decisions.

Alexander J Stewart1, Mohsen Mosleh2, Marina Diakonova3

  • 1Department of Biology and Biochemistry, University of Houston, Houston, TX, USA. astewar6@central.uh.edu.

Nature
|September 6, 2019
PubMed
Summary
This summary is machine-generated.

Network structure can distort collective decisions through "information gerrymandering." Strategically placed zealots and network design can bias voting outcomes, even in large groups, hindering consensus.

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Area of Science:

  • Social Science
  • Network Science
  • Computational Social Science

Background:

  • Collective decision-making relies on integrating information from various sources.
  • Information flow is often constrained by social networks and susceptible to manipulation by bots or zealots.
  • Understanding how network structures influence collective outcomes is crucial for democratic processes.

Purpose of the Study:

  • To model and analyze the phenomenon of information gerrymandering in collective decision-making.
  • To investigate how network topology and strategic placement of influential agents can bias voting outcomes.
  • To identify and quantify information gerrymandering in both experimental and real-world social networks.

Main Methods:

  • Development of a voter game model with players on an influence network.
  • Mathematical analysis to uncover the principles of information gerrymandering.
  • Social network experiments with 2,520 human subjects to validate theoretical predictions.
  • Analysis of real-world networks, including online political discussions and legislative data.

Main Results:

  • Information gerrymandering, driven by network structure, can sway collective decisions even with equal party sizes and influence.
  • Strategically placed zealots can induce information gerrymandering and bias outcomes.
  • Experimental data confirmed the predicted effects of information gerrymandering.
  • Information gerrymandering was identified in online political discussions and historical legislative data.

Conclusions:

  • The structure of influence networks can systematically distort collective decision-making.
  • Information gerrymandering represents a vulnerability in collective intelligence, exploitable by strategic actors.
  • Widespread information gerrymandering can lead to group deadlock and prevent consensus, posing a social dilemma.