Psych ch 9 start 10 Flashcards
What is the Certainty Effect in decision-making?
The Certainty Effect refers to the tendency of individuals to prefer a guaranteed outcome over a higher-risk option even if the latter has a greater expected value.
What is the significance of learning about deck outcomes in the Iowa Gambling Task?
Participants learn through experience which decks are advantageous or disadvantageous influencing their decision-making in high-risk scenarios.
Why do most individuals prefer a certain monetary gain over a risky bet with a higher expected value?
Most individuals exhibit risk aversion for gains favoring a guaranteed amount over a risky option that could yield a higher payoff.
How do anticipated outcomes affect decision-making in risk scenarios?
Anticipated outcomes can significantly influence choices with individuals often underestimating the risks associated with potential losses.
What are the key components of the Iowa Gambling Task?
The Iowa Gambling Task involves drawing cards from four decks, where participants learn to differentiate between decks that yield higher returns and those that lead to greater losses.
What is the relationship between risk-taking and gambling behavior?
Gambling behavior can lead to risky decisions where individuals may overlook potential losses often due to an underestimation of risk.
What is the primary focus of researchers studying gambling behavior?
Researchers aim to understand the decision-making processes and risk factors involved in gambling often through controlled laboratory studies.
What factors can lead individuals to choose a bad deck in the Iowa Gambling Task?
Individuals may choose a bad deck due to the allure of higher immediate payoffs or boredom with safer options despite knowing the risks.
What is means-ends analysis in problem-solving?
Means-ends analysis is a problem-solving strategy where individuals identify their current state, desired goal, and break down the steps required to bridge the gap between them.
What is the significance of physiological responses in the Iowa Gambling Task?
Physiological responses, such as skin conductance, reflect the emotional state and risk assessment of participants, indicating learned preferences for safer choices over time.
What is Prospect Theory?
Prospect Theory describes how people make decisions based on the potential value of losses and gains emphasizing that losses generally have a greater emotional impact than an equivalent amount of gains.
What distinguishes good decks from bad decks in the Iowa Gambling Task?
Good decks yield higher returns with lower loss frequencies while bad decks have higher loss amounts or frequencies that can lead to overall negative outcomes.
How does the perception of loss frequency influence decision-making in gambling?
Higher loss frequency from certain decks can deter participants from choosing those decks despite potentially higher payoffs.
How does the concept of risk aversion manifest in financial decision-making?
Risk aversion in financial decision-making leads individuals to choose safer lower-yield investments over riskier options with higher returns.
What is the role of implicit learning in decision-making during gambling tasks?
Implicit learning allows individuals to make quick decisions about risk based on past outcomes without explicit instruction, shaping behavior through experience.
How does anxiety affect performance in decision-making tasks?
Anxiety can enhance performance up to a point by increasing alertness for decision-making but excessive anxiety may lead to impaired cognitive function and decision-making.