Chapter 8 Flashcards
Thinking
mental activity/processing information; includes learning, remembering, perceiving, communicating, believing, deciding
Cognitive economy
investing as little mental energy as possible unless its necessary to do more, referred to as fast and frugal thinking
thin slicing
our ability to extract useful information from small bits of behaviour
cognitive bias
systematic error in thinking
what is the representative heuristic and how can it lead to cognitive bias
heuristic that judges the probability of an event by its superficial similarity to a prototype (estimating the likelihood of an event based on past experience). This can lead to overgeneralizations due to our tendency to be poor at considering base rates(base rate neglect). an example of the representative heuristic is stereotyping, demonstrated using thought experiments (what do you think about william)
what is the availability heuristic and how can it lead to cognitive bias
estimating the likelihood of an occurance based on the ease with which it comes to mind, can mislead us as our experiences can be biased
hindsight bias
our tendency to overestimate how accurately we could have predicted something happening once we know the outcome, “I knew it all along” effect.
framing
the way a question is worded can influence the decisions people make.
Top-down processing
filling in the gaps of missing information using experience and background knowledge
bottom up processing
processing from info received, constructing meaning by building up understanding through experience
concept
our general knowledge about objects, actions, and things that share core properties, an example of top-down processing
schema
concepts we’ve stored in memory about how certain actions, objects, and ideas relate to each other, an example of top-down processing
system 1 thinking
rapid and intuitive, below concious awareness
system 2 thinking
slow and analytical, deliberate thinking
framing
the way a question is worded can influence the decisions people make
what is problem solving and what are the 2 approaches?
generating a cognitive strategy to accomplish a goal, the 2 approached are heuristics and algorithms
algorithm aproach to problem solving
step-by-step procedures for solving problems; requires analysis, is slow, rigid and inflexible
heuristic approach to problem solving
mental shortcuts; relying on past experiences/going with our gut
analogies
can solve problems by drawing similarities from 2 different situations
paralysis by analysis/ decision fatigue
brain becomes confused/overwhelmed by excessive information
neuroeconomics
study of how the brain works when making financial decisions, helps us understand why decision making goes wrong sometimes for some people