Cognitive Approach

• Peak end rule


  A bias in which people judge an experience based on what happened in the most intense moment, and what ahppened at the end
• Peak end rule study

  Kahnemann et al
• Procedure of Kahnemann et al


  Two conditions;

  Condtion 1: Hold hands in painfully cold water for 60 seconds

  Condtion 2: Hold hands in painfully cold water for 60 seconds, warm water is introduced for the last 30 seconds
• Results of Kahnemann et al

  80% chose the second condition
• Conclusion of Kahnemann et al


  As the water felt nice at the end, peak end rule is proven to work as the intensity didn't remain throughout the whole time of the participants hand being in the water
• Anchoring Bias


  The tendency to rely on the first piece of information you recieve
• Anchoring Bias study


  Strack and Mussweiler
• Procedure of Strack and Mussweiler


  Randomly allocated to one of two conditions. In condition 1 participants were asked; ' Did Gandhi die before or after yhe age of 9?' and in condition 2 they were asked 'Did Gandhi die before or after the age of 140?
• Results of Strack and Mussweiler


  When asked what they belived Gandhis age to be, the low anchor group (1), on average said 50 years old. The high anchor group (2), on average said 67
• Conclusion of Strack and Mussweiler


  Participants relied on the first piece of information they were given when estimating his age.
• Framing effect


  When options are framed in a positive/negative way it changes our decision making process.
• Framing effect study


  Tversky and Kahneman
• Procedure of Tversky and Kahneman

  Two conditions;

  Condition 1: '600 people need to be saved, do you want to a) save 200, or b) have a 1/3 chance of saving all 600 people, or a 2/3 chance of saving 0 people.'

  
  

  Condition 2: '600 people need to be saved, do you want to a) kill 400, or b) have a 1/3 chance of killing 0 people, or a 2/3 chance of killing 600 people'.
• Results of Tversky and Kahneman


  Condition 1: 75% chose option A

  Condition 2: 75% chose option B
• Conclusion of Tversky and Kahneman


  When options are framed in a negative way we choose the option with the least risk of loss. When options are framed in a postive way, we choose the option where there will definite success.