Decision Making & Treatment Choices Flashcards
What are the three different types of decisions?
Certain
Uncertain
Risky
What is Expected Utility Theory (EUT)? Neumann and Morgenstern
Links choice with value and the probability of each option, based on the rules of logic (how people SHOULD make decisions)
What is the maximum expected utility (MEU) choice?
the option with the greatest or maximum value should be chosen - the ‘correct’/’rational’ choice
What assumptions are made for rational decision making?
People are motivated to follow rules
People have full knowledge of all options
People’s representations of options, risk and benefits are accurate
People know what their values are, and the values are stable
How do people ACTUALLY make decisions?
From experiences (same/different decision)
Gut reaction
Sometimes don’t know why
Sometimes think hard
Why don’t people use EUT (expected utility theory) on a regular basis?
Don’t have the processing capacity, and its a lot of effort
What are 3 simpler, decision making strategies?
Satisfying - choose a satisfactory criterion and choose the first option that matches
Elimination by aspects - choose one attribute and compare the choices with it
Heuristic - use a rule of thumb e.g. friend said X, done X before
What is information processing strategy system 1?
Intuitive-experience strategy - fast decision making
Choice usually made on a rule of thumb triggered by a bit of information bu someone, informed by experience or beliefs
(subconscious, quick, little effort)
What type of choice is likely to be made using information processing system 1?
More likely to regret it - wrong choice
What is information processing system 2?
Deliberative and analytic, slow, attends to details of the problem and evaluates pros and cons, makes choice based on trade offs between evaluations
conscious, time-consuming, emotionally demanding
What type of choice is likely to be made using system 2 information processing?
More stable choice - happier with choice, less likely to regret it
What can cause bias in decision making?
How information is presented e.g. facts and figures
Context in which the information is given (heuristics, risk perception) - people pick up on cues which can affect their decisions
Is it the figures indicating risk or the perception of risk that influences choice?
Perception
What is an informed decision based upon?
All advantages and disadvantages and consequences
Evaluating options with own values
Trade off evaluations to make a choice and act on it
When does decision making go wrong?
Missing information/limited search for information
Judgements or inferences are biased
Think too much and find counter evidence that does not add more to the decision representation