Thinking & Decision making

By: Thinks -> makes a decision -> “Prisha”

Key terms
• Thinking: Something that we should be doing but don’t do The
process of using knowledge and information to make plans, interpret
the world, and make predictions about the world in general.
• Decision making: as the process of identifying and choosing
alternatives based on the values and preferences of the decision-maker
Dual processing model
• Dual processing theory of human cognition postulates that reasoning
and decision-making can be described as a function of both an
intuitive, experiential, affective system (system I) and/or an analytical,
deliberative (system II) processing system.
Studies for thinking and decision making
• Tversky and Kahneman: Gender ratio in hospitals
• Atler and Openhimer: Difficult test v/s simple test
Biases in thinking and decision making
• Anchoring Bias: Decision making affected by the first piece of
information provided (an anchor)
• Framing Bias: The framing effect is a cognitive bias where people
decide on options based on whether the options are presented with
positive or negative connotations; e.g. as a loss or as a gain.
Anchoring Bias
• Strack and Mussweiller (1997)
• Englich and Mussweiller (2001)
• Tversky and Kahneman
Framing bias

• https://youtu.be/LxFw80qiCJM - Tversky and Kahneman

thanks