TB4 Lecture 4; Decision making and the brain

The main objectives in this lecture are;

  • Expected value v.s expected utility
  • Reward and the brain
  • Temporal discounting
  • Social decision making
  • Heuristics in decision making
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  • Created by: mint75
  • Created on: 25-05-15 17:59

1. What is loss aversion?

  • The tendency for compulsive gambling to start after a traumatic loss type event
  • Perceiving probability in a highly subjective manner, overestimating the chances of low probability events, and underestimating high ones
  • The tendency for people to strongly prefer avoiding loss than acquiring gains
  • The tendency for people to strongly acquiring gains than avoiding loss
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Other questions in this quiz

2. What is a heuristic?

  • A trust game played between two pps
  • A mental shortcut that allows people to make mental judgements quickly and efficiently
  • 'Fast and frugal' judgments that are only made by humans
  • Receiving a positive reward after avoiding a stimulus

3. What is the decoy effect?

  • Presentation of another option that is inferior in all respects has shown to influence preference
  • Preference for current state of affairs

4. What is the framing effect?

  • When the objective value exceeds that of the expected utility
  • People tend to avoid risk when a positive frame is presented, but sees risk more when a negative frame is presented (even when options are the same! For example saving people, or killing people in vaccine example).
  • People tend to avoid risk when a negative frame is presented, but sees risk more when a positive frame is presented (even when options are the same! For example saving people, or killing people in vaccine example).
  • When the expected utility exceeds the objective value

5. What is temporal discounting?

  • The tendency for people to discount rewards as they approach a temporal horizon in the future or the past (i.e., become so distant in time that they cease to be valuable)
  • The tendency for people to discount rewards that occur closely on the temporal horizon i.e available closer to 'now' as they will have higher cumulative effects in the future

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