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Understanding Decision Making Models Study Guide

This guide provides a comprehensive overview of the core concepts in judgment and decision making, including different theories of rationality, models of cognitive processes, and the mathematical underpinnings of belief updating. It is suitable for students and researchers interested in cognitive psychology, behavioral economics, and philosophy of mind.

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Introduction to Rational Thinking and Behaviour

Introduction to Rational Thinking and Behaviour

Rationality involves using good evidence and reasoning to form beliefs and taking appropriate actions to achieve goals.

  • Instrumental Rationality
  • Epistemic Rationality
  • Practical Rationality
  • Theoretical Rationality
  • Evidential Rationality
  • Goal fulfillment
  • Emotional regulation
  • Thin Theories of rationality
  • Decision theory

Judgment and Decision Making Perspectives

The study of thought processes regarding the rationality of action and the rationality of belief within the Great Rationality Debate.

  • rationality of action
  • rationality of belief
  • descriptive accounts
  • normative models
  • heuristics and biases research program
  • Meliorists
  • The Great Rationality Debate
  • instrumental rationality
  • optimization of goal fulfillment

Normative Models and Rationality in Decision Making

Normative and Descriptive Models of Decision Making

This text explores normative models of decision making such as expected utility and subjective expected utility compared to descriptive models of human response patterns.

  • Normative models
  • Descriptive models
  • Expected utility
  • Subjective expected utility (SEU)
  • Rationality
  • Instrumental rationality
  • Transitivity
  • Axioms of choice
  • Sure-Thing Principle
  • Independence Axiom
  • Framing effects
  • Endowment effect
  • Loss aversion
  • Status quo bias
  • Procedural invariance
  • Regularity principle
  • Constructed Preference View
  • Preference Reversals
  • Outcome Bias
  • Libertarian Paternalism

Epistemic Rationality and Dual-Process Cognition

Reasoning, Judgement, and Probabilistic Calibration

This text explores epistemic rationality, dual-process theory, and the application of Bayes' rule in human probabilistic judgment and decision making.

  • Epistemic rationality
  • Probabilistic judgment
  • Knowledge calibration
  • Overconfidence effect
  • Planning fallacy
  • Heuristics and biases
  • Dual-Process Theory
  • Type 1 processing
  • Type 2 processing
  • Attribute substitution
  • Four card selection task
  • Falsifiability principle
  • Indicative rule
  • Deontic reasoning
  • Heuristic-Analytic Theory
  • Belief updating
  • Conditional probability
  • Gambler's fallacy
  • Formal discipline hypothesis

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