Decision Making: Shortcuts and Information That We Ignore
What is Decision Making?
Any case where we are presented with two or more courses of action and must select just
We make numerous decisions in life.
o Set the course for our life.
The Big Question:
o How accurate are our decisions?
People are not always rational decision makers.
We use heuristics to make decisions.
o Shortcuts that often work but will sometimes lead to bad decisions.
Used when categorizing people or situations.
o Quick, easy way to make decisions.
o Sometimes leads to correct decision, sometimes does not.
o Very powerful.
Judge the likelihood that something belongs to a category based on how much it
resembles your idea of the category.
Conjunction Fallacy: Mistake of assuming a conjunction is more likely than a constituent
People estimate frequency of an event by the ease of retrieving examples