Psychology 3130A/B Lecture Notes - Lecture 9: Status Quo Bias, Life Insurance, Risk Aversion

• School: Western University
• Department: Psychology
• Course: Psychology 3130A/B
• Professor: John Paul Minda

Document Summary

What is decision making: reducing uncertainty, bc uncertainty causes anxiety, max. outcome. Identification: recognition decision needs to be made, framing of decision, semantics and linguistic factors can influence what appears to be the best, really important e. g. is it on sale, can influence decision. Generation: generation of possible decision alternatives is affected by. Individual effects: cognitive biases (reduced memory work capacity for e. g. , env biases (cost of making error) Evaluation: decision alternative are generated, decision-market evaluates them, probabilities, of the outcomes, so some decisions riskless others risky, consequences, costs, risks, benefits, risks/benefits. Selection (decision: selection of decision alternative can have immediate consequences (or not, once a decision is made, decision maker can engage in, re-evaluation, re-framing, regeneration, action, check outcome. Many decision are carried out with no difficultly: often problems occur though (things that affect some decision making errors later talk about) Conflict: make tradeoffs (gas mileage vs car power)