Flashcards in Decision Making (chapt.7) Deck (11):
a person must select one option from a number of alternatives. There is some amount of information available with respect to the option. The timeframe is relatively long (longer than a second). The choice is associated with the uncertainty; that is it is not necessarily clear which is the best option
Normative decision models
Multi-attribute utility theory assumes that the overall value of a decision option is the sum of the magnitude of each attribute multiplied by the utility of each attribute.
U(v) = ∑i=1 a(i) u(i)
Heuristic and Biases
Information Processing Limits in Decision Making Cue Reception and Integration, Hypothesis Generation and Selection, Plan Generation and Action Choice
Heuristics and biases in hypothesis generation, education and selection
Generation of limited Number of Hypotheses.
One and four
One Recent and more frequent Representativeness Heuristics.
Situation that look alike
Stuck in one hypotheses
Seek first only confirming information
Heuristic and Biases in action selection
retrieve a small number of action, availability heuristic for action, availability of possible outcomes, framing bias
Dependency of decision making
Dependency of Decision making on the Decision Context.
Skill, Rule and knowledge-based Behavior.
Improving decision making
task redesign, decision support systems, decision matrices and trees, spreadsheets, simulation, expert system, displays, training
Heuristics and Biases in Receiving and Using Cues
Attention to a Limited Number of Cues.Cue primacy and anchoring. Inattention to Later Cues.Cue Salience .
Overweighting of Unreliable Cues.
Heuristics and Biases in Action Selection
Retrieve a small number of action.Availability heuristic for action. Availability of possible outcomes. Framing bias.
Factors Affecting Decision Making
Three Levels of Cognitive Controls (Rasmussen).
SRK (Skill, Rule, Knowledge) Model of behavior.