PSY BEH 11B Lecture Notes - Lecture 5: Dual Process Theory, Utility, Bounded Rationality

• School: UC-Irvine
• Department: Psychology and Social Behavior
• Course: PSY BEH 11B
• Professor: Linda Levine

Document Summary

Normative decision theories define how people should make decisions. Expected utility theory: people make decisions considering the possible alternatives and choosing the most desirable one. Rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. Judgment and decision making are constrained by: Dual process theory (system 1, system 2) System 1: intuitive, reactive, emotional, associative, quick, effortless, slow-learning, automatic, primitive. System 2: systematic, deliberative, cognitive, rational, slow, effortful flexible, controlled, more modern. Has to be initiated - when there"s time, resources, motivation.