Decision Making

Question 1

Are people rational and why

Answer 1

No because we have inherent biases in our decision making, we don’t logically make decisions based on the info available

Question 2

What is the muller-lyer illusion

Answer 2

It’s when the direction the arrows are facing makes the length of the line in between them longer or shorter

Question 3

Does visual illusion demonstrate that our intuition fools us

Answer 3

Yes

Question 4

How many systems are in decision making

Answer 4

2

Question 5

What is system 1 in decision making

Answer 5

Simple decision making for fast decision, mental shortcuts,

Question 6

What is system 1 called in decision making

Answer 6

Heuristics

Question 7

What is system 2 in decision making

Answer 7

Effortful, slow, logical, conscious

Question 8

Are both the systems in decision making dependant on working memory ?

Answer 8

Yes

Question 9

what process are both the decision making systems reliant on

Answer 9

The working memory

Question 10

What is Framing heuristics

Answer 10

The observation that people make different choices depending on how info. About the decision is presented

Question 11

How are gain and losses processed differently

Answer 11

People are more reluctant to lose money and therefore will take greater risks to avoid this

Question 12

What are the 5 different errors in decision making

Answer 12

Framing heuristics, decoy effect, losses and gains, opt in/opt out and availability heuristics

Question 13

What is the decoy effect

Answer 13

A change in preference between two options when a third unattractive option is presented

Question 14

What is opt in/ opt out in decision making

Answer 14

People adopt the default position for difficult emotional decisions

Question 15

What is availability heuristics

Answer 15

We base judgements by the most common reports

Question 16

What is ecological rationality

Answer 16

The idea that heuristics are neither good or bad, but instead well adapted or not well adapted to a given environment

Question 17

What brain regions underlay decision making

Answer 17

Striatum, dorsolateral prefrontal cortex, orbital frontal cortex and amygdala

Question 18

What does the striatum do in decision making

Answer 18

Processes gains, aids decision making by representing reward values

Question 19

What does the dorsolateral prefrontal cortex do in decision making

Answer 19

Working memory, planning and reasoning

Question 20

What does the orbital frontal cortex do in decision making

Answer 20

Working memory for emotion

Question 21

What does the amygdala do in decision making

Answer 21

Processing of losses and threats

Question 22

What does Gigerenzer think about Kahnemans theory of 2 decision making systems

Answer 22

He believes that the usefulness of these systems depends on the context

Question 23

Is human decision making prone to errors

Answer 23

Yes