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Think Heuristically Risks and Benefits of Snap Judgments

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Presentation on theme: "Think Heuristically Risks and Benefits of Snap Judgments"— Presentation transcript:

1 Think Heuristically Risks and Benefits of Snap Judgments
Chapter 10 Think Heuristically Risks and Benefits of Snap Judgments

2 Human Decision-Making Systems
Heuristic thinking The “Two-Systems” Approach to Human Decision Making Reactive (System-1) Thinking Reflective (System-2) Thinking The Value of Each System © Pearson Education, Inc. All rights reserved.

3 © 2013 Pearson Education, Inc. All rights reserved.

4 Heuristics: Their Benefits and Risks
Individual Cognitive Heuristics 1. Satisficing The Satisficing Heuristic 2. Temporizing The Temporizing Heuristic © Pearson Education, Inc. All rights reserved.

5 Heuristics: Their Benefits and Risks
3. Affect: “Go with your Gut” The Affect Heuristic 4. Simulation The Simulation Heuristic 5. Availability The Availability Heuristic © Pearson Education, Inc. All rights reserved.

6 Heuristics: Their Benefits and Risks
6. Representation The Representation Heuristic 7. Association The Association Heuristic 8. Stereotyping The Stereotyping Heuristic © Pearson Education, Inc. All rights reserved.

7 Heuristics: Their Benefits and Risks
9. “Us vs. Them” The “Us vs. Them” Heuristic 10. Power Differential The Power Differential Heuristic 11. Anchoring with Adjustment The Anchoring with Adjustment Heuristic © Pearson Education, Inc. All rights reserved.

8 Heuristics: Their Benefits and Risks
12. Illusion of Control The Illusion of Control Heuristic 13. Optimistic Bias The Optimistic Bias Heuristic 14. Hindsight Bias The Hindsight Bias Heuristic © Pearson Education, Inc. All rights reserved.

9 Heuristics: Their Benefits and Risks
15. Elimination by Aspect: “One Strike and You’re Out” The Elimination by Aspect Heuristic 16. Loss and Risk Aversion The Loss and Risk Aversion Heuristic 17. “All or Nothing” The “All or Nothing” Heuristic © Pearson Education, Inc. All rights reserved.

10 Heuristics: Their Benefits and Risks
Heuristics in Action Cognitive heuristics expedite our thinking by generating ideas; not necessarily reflectively Often, cognitive heuristics work in tandem with one another Examples © Pearson Education, Inc. All rights reserved.

11 2010 U.S. Senate © Pearson Education, Inc. All rights reserved.

12 2010 Governors © Pearson Education, Inc. All rights reserved.

13 Heuristics and Possible Errors from Their Misapplication
© Pearson Education, Inc. All rights reserved.

14 © 2013 Pearson Education, Inc. All rights reserved.

15 © 2013 Pearson Education, Inc. All rights reserved.


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