Psychology 2135A/B Lecture Notes - Lecture 18: Decision-Making, Expected Utility Hypothesis, Satisficing

• School: Western University
• Department: Psychology
• Course: Psychology 2135A/B
• Professor: John Paul Minda

Document Summary

We want to reduce it by choosing things that have certain outcomes. There are a lot of links between uncertainty and anxiety. Avoid losing things, and want to gain things. Decision maker must make tradeoffs across different dimensions (e. g. , car"s power vs. gas mileage; tv"s - price and quality; spending time at work vs. with family) there are conflicts you need to resolve. If you"re working in a company, the future demand for a product. The time it takes to complete something. You over/under estimate the time you need for something. Outcome of decision often depends on uncertain variables or events (e. g. , future demand for a product; completion time). Identification: when you recognize you need to make a decision and you frame the decision. Framing of decision: important because the aspects of the decision you focus on can change the outcome you desire (focusing on gains and losses can change people"s decisions)