PSYC2013 Lecture 10: Lecture 10- Decision Making
8 Sep 2019
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Document Summary
What is decision making: choosing between options on the basis of the available information, contrasts with reasoning, which derives from conclusions from available information, requires judgement: what are the values of these options, could just calculate expected values. Value of each outcome multiplies by its probability: fundamental problem is uncertainty. Fundamental problem: uncertainty: nontrivial decision-making involves uncertainty, we tend to discount outcomes for uncertainty, people would take below expected value when uncertain. Future discounting: prefer 100 now to 100 next week, discount more further into future, hyperbolic function, kids discount future more than older, less stable, more impulsive discount more.
