Description of How Humans Make Both Logical and Risky Decisions - Essay Example

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Description of How Humans Make Both Logical and Risky Decisions

Comprehending the process through which people arrive at their decisions is a broadly studied area of cognitive psychology. Each decision one makes is based on several factors that include but are not limited to experience, cognitive bias and emotional and physiological wellbeing. Age, gender as well as a myriad of individual differences, are also important factors in the process (Dietrich, 2010). A crucial aspect of decision-making is the application of heuristics; commonly described as decision-making strategies employed in situations when one has little information or when they need to reduce the burden of decision-making. While they may appear capricious and heuristics serve as mental shortcuts and are often correct since they are based on personal experience and hindsight (Dietrich, 2010). For instance, when shopping, one may apply price heuristics, which they use to determine the quality of a product by holding it in direct proportion with the price. This way they will assume that the more pricy the commodity, the more valuable it is, and they save a lot of time that would have been spent trying to authenticate the quality of the good by minute examinations consultations or even a myriad of considerations. ...
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Description of How Humans Make both Logical and Risky Decisions Unlike animals which make decisions or take actions mostly based on their instincts, human beings are engaged in decision making at different levels every day. Some of the decisions are subconscious, and our bodies compel us to act in a certain way depending of a variety of biological circumstances…
Author : schuppebradley
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