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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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Factors Affecting Perception01:25

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Perception is influenced by perceptual set, context, motivation, and emotion. Perceptual set, or perceptual expectancy, refers to the tendency to perceive things in a particular way, influenced by previous experiences and expectations. This phenomenon affects the interpretation of stimuli, creating a set of mental tendencies and assumptions that impact sensory perceptions of sound, taste, touch, and sight.
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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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Decision Making: Traditional Method01:14

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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.
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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.
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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The Availability Heuristic01:08

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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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Choosing the right frame: how context preferences facilitate subsequent decisions.

Lauren S Treiman1, Wouter Kool2,3

  • 1Division of Computational & Data Sciences, Washington University in St. Louis, St. Louis, MO, USA. laurenst1006@icloud.com.

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People prefer choices framed as gains over losses and select frames aligning with their risk tolerance. This research explores how context preferences influence decision-making and cognitive biases.

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Area of Science:

  • Cognitive Psychology
  • Decision Science
  • Behavioral Economics

Background:

  • Decision-making is influenced by context, notably the framing effect, where loss-framed choices increase risk-seeking behavior.
  • Existing research primarily focuses on how framing affects choices, not how individuals select between different framing contexts.

Purpose of the Study:

  • To investigate how individuals choose between decision-making contexts (frames) and the impact of these choices on subsequent decisions.
  • To explore the relationship between individual risk preferences and frame selection.

Main Methods:

  • Development and implementation of the Frame Selection Task (FST).
  • Participants in the FST first selected the framing (gains vs. losses) for options and then made a choice between them.
  • Analysis of frame preferences and their correlation with individual risk aversion.

Main Results:

  • Participants demonstrated consistent frame preferences, predominantly favoring the gain frame.
  • Individuals were willing to incur costs to select options within their preferred frame.
  • Frame selection aligned with risk preferences; higher risk aversion correlated with a stronger preference for the gain frame.

Conclusions:

  • Individuals actively choose decision-making contexts (frames) based on their preferences.
  • Frame preferences can be combined with cognitive biases, such as the framing effect, to modulate decision-making.
  • Understanding context selection provides insights into the interplay between cognitive biases and individual decision strategies.