Ch 11.5 Flashcards
How do emotions affect decision making?
Emotions are a key part of decision making, influencing how we justify decisions, handle failures, and use intuition.
When do emotions help in decision making?
Positive emotions can promote creativity and intuition, helping solve problems quickly.
Strong emotions can motivate people to correct errors or act ethically (e.g., whistleblowers).
When do emotions hinder decision making?
Strong emotions (e.g., anger, excessive pride) can lead to poor decisions, like overpaying for acquisitions or escalating commitment.
Stress and poor information search lead to risky decisions.
How does mood affect decision making?
Positive mood: People remember positive information, evaluate things more positively, overestimate good events, and make quicker decisions.
Negative mood: People remember negative information, evaluate things more negatively, overestimate bad events, and make more deliberate decisions.
What are the effects of mood on decision making?
Good mood: Fosters creativity, intuitive decisions, and overconfidence.
Bad mood: Leads to more cautious, systematic decisions, but can be effective for careful processing.
What is the rational decision-making model?
It’s a step-by-step process for making decisions, ideal for complex or unfamiliar situations.
Does the rational model always apply?
No, real decisions often “short-circuit” the model due to biases or emotional influences, like using intuition over analysis. Experts may skip steps based on experience.
