PSYCH 338 Chapter Notes - Chapter 11: Bounded Rationality, Confirmation Bias, Satisficing

• School: University of Waterloo
• Department: Psychology
• Course: PSYCH 338
• Professor: Doug Brown

Document Summary

Decision making the process of developing a commitment to some course of action. Problem a perceived gap b/w an existing state and a desired state. Ill structured problem a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown. The compleat decision maker a rational decision-making model: Perfect rationality a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain. Bounded rationality a decision strategy that relies on limited information and that reflects time constraints and political considerations. Framing aspects of the presentations of information about a problem that are assumed by decision makers. Cognitive biases tendencies to acquire and process information in and error-prone way. Confirmation bias the te(cid:374)de(cid:374)cy to seek out i(cid:374)for(cid:373)atio(cid:374) that co(cid:374)for(cid:373)s to o(cid:374)e"s own definition of solution to a problem. Information overload the reception of more information than is necessary to make effective decisions.