Decision making Flashcards
What is a decision?
A selection of a belief or action (choice) among alternative possibilities (choices)
What do decisions require? (3)
Integration
evaluation
multiple factors
decision making under risk is what?
options are probabilistic, but all info is known
Decision making under ambiguity is what?
options are probabilistic, and either values of probabilities of an option are unknown
decision making under ignorance is what?
one or more options is unknown
What is a stated preference?
what WOULD they prefer, IF giving these options
what is revealed preferences?
what DO they prefer, WHEN given these options
What is ambiguity adverse?
overweighting of the worse case outcome
what is the role of feedback in decision making?
feedback shows decision makers outcome of choice they make
can influence choice on the trial
individuals can learn outcome probabilities from feedback
In expected value what does Normal/prescriptive model of decision making describe?
Describes how people shoe decide (in order to maximize wealth)
grounded in economic and statistical theory
What is the expected value?
it is the sum of the value of the outcome and the probability of the outcome occurring
What are the brain areas that are implicated in decisions that have adverse outcomes?
insular cortex
Ventrolateral prefrontal cortex
What are the brain areas that are implicated in decisions that have unexpected rewards?
Ventral striatum
medial prefrontal cortex
What are the brain areas that are implicated in decisions involving executive control with top down processing?
DLPFC
posterior parietal cortex
