Chapter 3: Thinking and decision-making

Question 1

Thinking

Answer 1

a conscious process that modifies information creating new information. Only cognitive process to crate more information.

Question 2

Decision-making

Answer 2

cognitive process that involves selecting a belief or action from other alternatives

Question 3

Normative models

Answer 3

Models how we should think, logically, in contrast to descriptive models

Question 4

Descriptive models

Answer 4

Models how we actually think, illogically, in contrast to normative models. Focus on accurate descriptions of thinking patterns.

Question 5

Formal logic

Answer 5

Normative model, Aristotle proposed syllogism:

if a.. and b… then c

Question 6

Theory of probability

Answer 6

Normative model, calculating what is most likely

Question 7

utility theory

Answer 7

Normative model, cost-benefit analysis

Question 8

Theory of reasoned action (TRA), Martin Fischbein 1967

Answer 8

States that an individuals choice of a behavior is based on the expected outcomes of that behavior – choice of behaviour is based on behavioural intention where:
attitude (the individuals perception of the behavior)
+
subjective norms (the perceived social presure)
=
behavioural intention

Question 9

Theory of planned behaviour (TPB), 1985

Answer 9

TRA with a third factor, so:
attitude + subjective norms + perceived behavioural control = behavioural intention
where perceived behavioural control are those situations where attitude and subjective norms are positive but a subject thinks that they are unable to complete the action.

Question 10

Ajzen and Fishbein (1973)

Answer 10

A study that found a 0.63 correlation between intentions and behaviour, meaning that the predictive validity of theory of planned behaviour is quite impressive.

Question 11

Albarracin et al (2001)

Answer 11

meta-analysis study investigating models of condom use. They concluded that the intentions reflected behaviour. They found that there was a correlational difference between data collected prospectively (0.45) vs retrospectively (0.57), meaning that if people have made up their mind beforehand they are more likely to use condoms.
Study is limited by self-reported data (social desirability effect).

Question 12

Luce, Bettman and Payne (1997)

Answer 12

A: Investigate whether task-related negative emotion will encourage decision-makers to process information more extensively due to attachment. Hypothesis is that it will.

M: Independent-measures design with a monitored information sesarch (tracking clicks).

P: Students were asked to imagine they were charity members providing financial support for children. They had to choose one of five children in terms of five attributes. The information was on a PC and was shown upon a click (a programme tracked which boxes were opened when). There were two-patterns to be observed; alternative-based transitions and attribute-based transitions, where attribute-based transitions were less emotionally laden. Two groups: higher-emotion with extensive background and high stakes choice vs low-emotion with superficial text and low stakes.

R: High emotion group opened larger number of boxes and spent more time. They also engaged in attribute-based transitions.

C: High-emotion group avoided negative emotions, meaning emotions impact decision-making, and also the anticipation of emotion, supporting the adaptive decision-maker framework.

E: low sample population and variety hence not very representative.

Question 13

Adaptive decision-maker framework and outline strategies for decision making.

Answer 13

Postulates a toolbox of strategies for decision making:
Weighted additive strategy (WADD): find weighted sum of alternatives by giving a score of importance to each attribute
Lexicographic (LEX): only looking at the most important attribute and then finding the best fitting alternative
Satisficing (SAT): cut-off point for attributes, anything that doesn’t meet is eliminated, look for alternatives until an acceptable one is found.
Elimination by aspects (EBA): selecting most important attribute and eliminating alternatives that don’t meet the requirement, then second most etc… until only one option.

Question 14

What influence our choice of strategy in terms of the adaptive decision-maker framework? (meta-goals)

Answer 14

Emotions and irrational factors influence strategy selection. Strategy selection is guided by goals:

• Maximizing decision accuracy: prefers WADD and quantifies attributes.
• Minimizing cognitive effort: LEX.
• Minimizing the experience of negative emotions: negative emotions associated with certain things can highly influence one’s decision-making – some decisions are emotion-laden. We try to not pick the decision which will implicit negative emotions. Researchers have proposed two hypotheses: that the negative emotion is an external factor that can influence the decision; and that decision-making adapts to the negative emotions, that it is a part of the process.
• Maximizing the ease of justification: EBA

Question 15

Micro vs macrolevel models

Answer 15

Macro-level models focus on the larger picture, where the decisions and outcomes are the main components. Macro focuses on choice outcomes from stable characteristics to predict, observed by researchers in a correlational analysis.
Micro-level models focus on the process of making a decision (which the different strategies are representative of) and are studied in a more quantifiable way. Micro-level research might apply a computer simulation, verbal protocols, monitored information search, or a neuroimaging technique.