Biases in thinking and decision-making

• System 1 Thinking and Heuristics

  • System 1: Fast, efficient, but prone to errors
  • Heuristics: Mental shortcuts for quick decision-making
• Key Concepts:

  • Assumptions based on simplified world views
  • Trade-off between efficiency and accuracy
  • Cognitive biases: Consistent but inaccurate thinking patterns
• Anchoring Bias


  • Over-reliance on the first piece of information (anchor) when making decisions
• Key Studies:

  • Englich and Mussweiler (2001): Courtroom sentencing
  • Tversky & Kahnemann (1974): Multiplication estimation
• Framing Effect


  • Reacting to choices differently based on how they are presented (positively or negatively)
• 1. Peak-End Rule


  • Judging experiences based on their most intense point and end, rather than the average
• Testability


  • Highly testable through various experimental methods:

  • Laboratory studies (e.g., Tversky & Kahneman's framing effect experiment)
  • Field studies (e.g., real-world decision-making scenarios)
  • Cognitive tasks and questionnaires

  • Can be tested using:

  • Controlled experiments
  • Observational studies
  • Neuroimaging techniques (for underlying cognitive processes)
• Applications

  • Used in:

  • Legal system (jury decisions)
  • Marketing (pricing strategies)
  • Healthcare (patient decision-making)
  • Policy-making (public health campaigns)
• Coherence

  • Aligns with:

  • Dual-process theory

  • Consistent with neurological findings
• Usefulness

  • Explains real-world behaviors in:

  • Consumer choices
  • Political decisions
  • Financial decisions

  • Helps improve decision-making processes
• Predictive Power

  • Can predict:

  • Responses to framed information
  • Influence of initial information on judgments
  • Evaluation of experiences based on peaks and endings

  • Limitations:

  • Individual and cultural differences
  • Complexity of real-world situations