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Decision Making

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Decision making



 
 
Decision making can be regarded as an outcome of mental processes (cognitive process
Cognition

Cognition is the science term for "the process of thought."Its usage varies in different ways in accord with different disciplines: For example, in psychology and cognitive science it refers to an information processing view of an individual's psychological Functionalism s....
) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice
Choice

Choice consists of the mental function of thinking involved with the process of judgment the merits of multiple wikt:options and wikt:selecting one of them for action....
. The output can be an action or an opinion of choice.

n performance in decision making terms has been the subject of active research from several perspectives. From a psychological perspective, it is necessary to examine individual decisions in the context of a set of needs, preferences an individual has and values they seek.






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Decision making can be regarded as an outcome of mental processes (cognitive process
Cognition

Cognition is the science term for "the process of thought."Its usage varies in different ways in accord with different disciplines: For example, in psychology and cognitive science it refers to an information processing view of an individual's psychological Functionalism s....
) leading to the selection of a course of action among several alternatives. Every decision making process produces a final choice
Choice

Choice consists of the mental function of thinking involved with the process of judgment the merits of multiple wikt:options and wikt:selecting one of them for action....
. The output can be an action or an opinion of choice.

Overview

Human performance in decision making terms has been the subject of active research from several perspectives. From a psychological perspective, it is necessary to examine individual decisions in the context of a set of needs, preferences an individual has and values they seek. From a cognitive perspective, the decision making process must be regarded as a continuous process integrated in the interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with the logic of decision making and rationality and the invariant choice it leads to.

Yet, at another level, it might be regarded as a problem solving activity which is terminated when a satisfactory solution is found. Therefore, decision making is a reasoning or emotional process which can be rational
Rationality

Rationality as a term is related to the idea of reason, a word which following Webster's may be derived as much from older terms referring to thinking itself as from giving an account or an explanation....
 or irrational
Irrationality

Irrationality is talking or acting without regard for rationality. The term is used, usually pejoratively, to describe thinking and actions that are, or appear to be, less useful or logical than other more rational alternatives....
, can be based on explicit assumptions or tacit assumptions
Tacit assumptions

A tacit assumption or implicit assumption is an assumption that includes the underlying agreements or statements made in the development of a logical argument, course of action, decision, or judgment that are not explicitly voiced nor necessarily understood by the decision maker or judge....
.

Logical decision making is an important part of all science-based professions, where specialists apply their knowledge
Knowledge

Knowledge is defined in the Oxford English Dictionary as expertise, and skills acquired by a person through experience or education; the theoretical or practical understanding of a subject, what is known in a particular field or in total; facts and information or awareness or familiarity gained by experience of a fact or situation....
 in a given area to making informed decisions. For example, medical decision making often involves making a diagnosis
Diagnosis

Diagnosis is the identification of the nature of anything, either by process of elimination or other analytical methods. Diagnosis is used in many different disciplines, with slightly different implementations on the application of logic and experience to determine the cause and effect relationships....
 and selecting an appropriate treatment. Some research using naturalistic methods
Naturalistic decision making

The naturalistic decision making framework emerged as a means of studying how people actually make decisions and perform cognitively complex functions in demanding situations....
 shows, however, that in situations with higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision making rather than structured approaches, following a recognition primed decision
Recognition primed decision

Recognition-primed decision is a model of how people make quick, effective decision makings when faced with complex situations. In this model, the decision maker is assumed to generate a possible course of action, compare it to the constraints imposed by the situation, and select the first course of action that is not rejected....
 approach to fit a set of indicators into the expert's experience and immediately arrive at a satisfactory course of action without weighing alternatives. Recent robust decision
Robust decision

Robust decision is a term dating back to the late 1990s. It is used to identify decisions made with a process that includes formal consideration of uncertainty....
 efforts have formally integrated uncertainty
Uncertainty

Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, Uncertainty_principle , statistics, economics, finance, insurance, psychology, sociology, engineering, and information science....
 into the decision making process. However, Decision Analysis
Decision analysis

Decision Analysis is the discipline comprising the philosophy, theory, methodology, and professional practice necessary to address important decisions in a formal manner....
, recognized and included uncertainties with a structured and rationally justifiable method of decision making since its conception in 1964.

Decision making processes topics

According to behavioralist Isabel Briggs Myers
Isabel Briggs Myers

Isabel Briggs Myers was an American psychological theorist. She was co-creator, with her mother, of the Myers-Briggs Type Indicator .She was home-schooled by her mother and went on to earn a bachelor's degree in political science from Swarthmore College....
, a person's decision making process depends on a significant degree on their cognitive style. Myers developed a set of four bi-polar dimensions, called the Myers-Briggs Type Indicator
Myers-Briggs Type Indicator

The Myers-Briggs Type Indicator assessment is a psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions....
 (MBTI). The terminal points on these dimensions are: thinking and feeling; extroversion and introversion; judgment and perception; and sensing and intuition. She claimed that a person's decision making style is based largely on how they score on these four dimensions. For example, someone who scored near the thinking, extroversion, sensing, and judgment ends of the dimensions would tend to have a logical, analytical, objective, critical, and empirical decision making style.

Other studies suggest that these national or cross-cultural differences exist across entire societies. For example, Maris Martinsons
Maris Martinsons

Maris Martinsons is director of the Pacific Rim Institute for the Studies of Management and a professor of management currently associated with the City University of Hong Kong, the Stockholm School of Economics and the University of Toronto....
 has found that American, Japanese and Chinese business leaders each exhibit a distinctive national style of decision making.

Some of the decision making techniques that we use in everyday life include:
  • listing the advantages and disadvantages of each option, popularized by Plato
    Plato

    Plato , was a Classical Greece Greeks philosopher, mathematician, writer of philosophical dialogues, and founder of the Platonic Academy in Ancient Athens, the first institution of higher learning in the western world....
     and Benjamin Franklin
    Benjamin Franklin

    Benjamin Franklin was one of the Founding Fathers of the United States of the United States. A noted polymath, Franklin was a leading author and Printer , Satire, list of political philosophers, politician, scientist, inventor, activism, statesman, and diplomacy....
  • flipping a coin, cutting a deck of playing cards, and other random or coincidence methods
  • accepting the first option that seems like it might achieve the desired result
  • prayer
    Prayer

    Prayer is the act of communicating with a deity or spirit in worship. Specific forms of this may include praise, requesting divine providence, confessing sins, as an act of reparation or an expression of one's emotional expression....
    , tarot
    Tarot

    The tarot is typically a set of seventy-eight cards, composed of twenty-one Trump , one The Fool , and four Suit of fourteen cards each?ten pip and four Face card cards ....
     cards, astrology
    Astrology

    Astrology is a group of systems, traditions, and beliefs which hold that the relative positions of astronomical object and related details can provide useful information about personality, human affairs, and other terrestrial matters....
    , augurs, revelation
    Revelation

    Revelation is the act of revealing or disclosing, or making something obvious and clearly understood through active or passive communication with the divinity....
    , or other forms of divination
    Divination

    Divination is the attempt to gain insight into a question or situation by way of a standardized process or ritual. Diviners ascertain their interpretations of how a querent should proceed by reading signs, events, or omens, or through alleged contact with a supernatural agency....
  • acquiesce to a person in authority or an "expert"
  • choosing the alternative with the highest probability-weighted utility
    Utility

    In economics, utility is a measure of the relative satisfaction from, or desirability of, consumption of various goods and services. Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behavior in terms of attempts to increase one's utility....
     for each alternative (see Decision Analysis
    Decision analysis

    Decision Analysis is the discipline comprising the philosophy, theory, methodology, and professional practice necessary to address important decisions in a formal manner....
    )


Cognitive and personal biases

Bias
Bias

Bias is a term used to describe a tendency or preference towards a particular perspective , ideology or result, especially when the tendency interferes with the ability to be impartial, unprejudiced, or Objectivity ....
es can creep into our decision making processes. Many different people have made a decision about the same question (e.g. "Should I have a doctor look at this troubling breast cancer symptom I've discovered?" "Why did I ignore the evidence that the project was going over budget?") and then craft potential cognitive interventions aimed at improving decision making outcomes.

Below is a list of some of the more commonly debated cognitive biases
List of cognitive biases

A cognitive bias is a pattern of deviation in judgment that occurs in particular situations .Implicit in the concept of a "pattern of deviation" is a standard of comparison; this may be the judgment of people outside those particular situations, or may be a set of independently verifiable facts....
.
  • Selective search for evidence
    Evidence

    Evidence in its broadest sense includes everything that is used to determine or demonstrate the truth of an assertion. Giving or procuring evidence is the process of using those things that are either a) presumed to be true, or b) were themselves proven via evidence, to demonstrate an assertion's truth....
     (a.k.a. Confirmation bias
    Confirmation bias

    In psychology and cognitive science, confirmation bias is a tendency to search for or interpret new information in a way that confirms one's preconceptions and to avoid information and interpretations which contradict prior beliefs....
     in psychology) (Scott Plous
    Scott Plous

    Scott Plous, Ph.D., is a Professor of Psychology at the Department of Psychology of Wesleyan University. He is also a Faculty Associate of the Tufts University Center for Animals and Public Policy....
    , 1993) - We tend to be willing to gather facts that support certain conclusions but disregard other facts that support different conclusions.
  • Premature termination of search for evidence - We tend to accept the first alternative that looks like it might work.
  • Inertia - Unwillingness to change thought patterns that we have used in the past in the face of new circumstances.
  • Selective perception - We actively screen-out information that we do not think is salient. (See prejudice
    Prejudice

    The word prejudice refers to prejudgment: making a decision about before becoming aware of the relevant facts of a case or event. The word has commonly been used in certain restricted contexts, in the expression 'racial prejudice'....
    .)
  • Wishful thinking
    Wishful thinking

    Wishful thinking is the formation of beliefs and making decisions according to what might be pleasing to imagine instead of by appealing to evidence or rationality....
     or optimism bias
    Optimism bias

    Optimism bias is the demonstrated systematic tendency for people to be over-optimistic about the outcome of planned actions. This includes over-estimating the likelihood of positive events and under-estimating the likelihood of negative events....
     - We tend to want to see things in a positive light and this can distort our perception and thinking.
  • Choice-supportive bias
    Choice-supportive bias

    In cognitive science, choice-supportive bias is a tendency to retroactively ascribe positive attributes to an option one has selected.For example, researchers have used written scenarios in which participants are asked to make a choice between two options....
     occurs when we distort our memories of chosen and rejected options to make the chosen options seem relatively more attractive.
  • Recency - We tend to place more attention on more recent information and either ignore or forget more distant information. (See semantic priming.) The opposite effect in the first set of data or other information is termed Primacy effect (Plous, 1993).
  • Repetition bias - A willingness to believe what we have been told most often and by the greatest number of different of sources.
  • Anchoring and adjustment - Decisions are unduly influenced by initial information that shapes our view of subsequent information.
  • Group think - Peer pressure
    Peer pressure

    Peer pressure refers to the influence exerted by a peer group in encouraging a person to change his or her attitudes, values, or behavior in order to conformity to the group....
     to conform to the opinions held by the group.
  • Source credibility bias - We reject something if we have a bias against the person, organization, or group to which the person belongs: We are inclined to accept a statement by someone we like. (See prejudice
    Prejudice

    The word prejudice refers to prejudgment: making a decision about before becoming aware of the relevant facts of a case or event. The word has commonly been used in certain restricted contexts, in the expression 'racial prejudice'....
    .)
  • Incremental decision making and escalating commitment - We look at a decision as a small step in a process and this tends to perpetuate a series of similar decisions. This can be contrasted with zero-based decision making. (See slippery slope
    Slippery slope

    In debate or rhetoric, a slippery slope is a classical informal fallacy. A slippery slope argument states that a relatively small first step inevitably leads to a chain of related events culminating in some significant impact, much like an object given a small push over the edge of a slope sliding all the way to the bottom....
    .)
  • Attribution asymmetry
    Attribution theory

    Attribution theory is a social psychology theory developed by Fritz Heider, Harold Kelley, Edward E. Jones, and Lee Ross.The theory is concerned with the ways in which people explain the behavior of others or themselves with something else....
     - We tend to attribute our success to our abilities and talents, but we attribute our failures to bad luck and external factors. We attribute other's success to good luck, and their failures to their mistakes.
  • Role fulfillment (Self Fulfilling Prophecy) - We conform to the decision making expectations that others have of someone in our position.
  • Underestimating uncertainty
    Uncertainty

    Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, Uncertainty_principle , statistics, economics, finance, insurance, psychology, sociology, engineering, and information science....
     and the illusion of control - We tend to underestimate future uncertainty
    Uncertainty

    Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, Uncertainty_principle , statistics, economics, finance, insurance, psychology, sociology, engineering, and information science....
     because we tend to believe we have more control over events than we really do. We believe we have control to minimize potential problems in our decisions.


Neuroscience perspective

The anterior cingulate cortex
Anterior cingulate cortex

The Anterior cingulate cortex is the frontal part of the cingulate cortex, that resembles a "collar" form around the corpus callosum, the fibrous bundle that relays neuron between the right and left cerebral hemispheres of the brain....
 (ACC), orbitofrontal cortex
Orbitofrontal cortex

The orbitofrontal cortex is a region of association cerebral cortex of the human brain involved in cognition processes such as decision-making....
 (and the overlapping ventromedial prefrontal cortex
Ventromedial prefrontal cortex

The ventromedial prefrontal cortex is a part of the prefrontal cortex in the human brain. Its function has not been fully determined, but experiments suggest that it may have a role in the processing of risk and fear, and in decision making....
) are brain regions involved in decision making processes. A recent neuroimaging
Neuroimaging

Neuroimaging includes the use of various techniques to either directly or indirectly imaging the neuroanatomy, function/pharmacology of the brain....
 study, found distinctive patterns of neural activation in these regions depending on whether decisions were made on the basis of personal volition
Volition

Volition can mean:*Volition *Volition *Volition, Inc., a video game developer*Volition Records, a record label...
 or following directions from someone else. Patients with damage to the ventromedial prefrontal cortex
Ventromedial prefrontal cortex

The ventromedial prefrontal cortex is a part of the prefrontal cortex in the human brain. Its function has not been fully determined, but experiments suggest that it may have a role in the processing of risk and fear, and in decision making....
 have difficulty making decisions.

Another recent study found that lesions to the ACC in the macaque
Macaque

The macaques constitute a genus of Old World monkeys of the subfamily Cercopithecinae. Aside from humans , the macaques are the most widespread primate genus, ranging from northern Africa to Japan....
 resulted in impaired decision making in the long run of reinforcement guided tasks suggesting that the ACC is responsible for evaluating past reinforcement information and guiding future action.

Emotion
Emotion

An emotion is a mental and physiological state associated with a wide variety of feelings, thoughts, and behavior.Emotions are subjective experiences, or experienced from an individual point of view....
 appears to aid the decision making process: Decision making often occurs in the face of uncertainty
Uncertainty

Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, Uncertainty_principle , statistics, economics, finance, insurance, psychology, sociology, engineering, and information science....
 about whether one's choices will lead to benefit or harm (see also Risk
Risk

Risk is a concept that denotes the precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of value and, as such, eventualities may have both beneficial and adverse consequences....
). The somatic-marker hypothesis is a neurobiological theory of how decisions are made in the face of uncertain outcome. This theory holds that such decisions are aided by emotions, in the form of bodily states, that are elicited during the deliberation of future consequences and that mark different options for behavior as being advantageous or disadvantageous. This process involves an interplay between neural systems that elicit emotional/bodily states and neural systems that map these emotional/bodily states.

Styles and methods of decision making

Styles and methods of decision making were elaborated by the founder of Predispositioning Theory
Predispositioning Theory

Predispositioning Theory was founded by Aron Katsenelinboigen , a Professor in Wharton School who dealt with indeterministic systems such as chess, business, economics, and other fields of knowledge and also made an essential step forward in elaboration of styles and methods of decision-making....
, Aron Katsenelinboigen
Aron Katsenelinboigen

Aron Katsenelinboigen, , a founder of Predispositioning Theory, was born in September 1927 in a Ukrainian town of Izyaslavl....
. In his analysis on styles and methods Katsenelinboigen referred to the game of chess, saying that “chess does disclose various methods of operation, notably the creation of predisposition—methods which may be applicable to other, more complex systems.”

In his book Katsenelinboigen states that apart from the methods (reactive and selective) and sub-methods (randomization, predispositioning, programming), there are two major styles – positional and combinational. Both styles are utilized in the game of chess. According to Katsenelinboigen, the two styles reflect two basic approaches to the uncertainty
Uncertainty

Uncertainty is a term used in subtly different ways in a number of fields, including philosophy, Uncertainty_principle , statistics, economics, finance, insurance, psychology, sociology, engineering, and information science....
: deterministic (combinational style) and indeterministic (positional style). Katsenelinboigen’s definition of the two styles are the following. The combinational style is characterized by

  • a very narrow, clearly defined, primarily material goal, and
  • a program that links the initial position with the final outcome.


In defining the combinational style in chess, Katsenelinboigen writes:

The combinational style features a clearly formulated limited objective, namely the capture of material (the main constituent element of a chess position). The objective is implemented via a well defined and in some cases in a unique sequence of moves aimed at reaching the set goal. As a rule, this sequence leaves no options for the opponent. Finding a combinational objective allows the player to focus all his energies on efficient execution, that is, the player’s analysis may be limited to the pieces directly partaking in the combination. This approach is the crux of the combination and the combinational style of play.

The positional style is distinguished by

  • a positional goal and
  • a formation of semi-complete linkages between the initial step and final outcome.
“Unlike the combinational player, the positional player is occupied, first and foremost, with the elaboration of the position that will allow him to develop in the unknown future. In playing the positional style, the player must evaluate relational and material parameters as independent variables. ( … ) The positional style gives the player the opportunity to develop a position until it becomes pregnant with a combination. However, the combination is not the final goal of the positional player—it helps him to achieve the desirable, keeping in mind a predisposition for the future development. The Pyrrhic victory
Pyrrhic victory

A Pyrrhic victory is a victory with devastating cost to the victor....
 is the best example of one’s inability to think positionally.”

The positional style serves to

a) create a predisposition to the future development of the position;
b) induce the environment in a certain way;
c) absorb an unexpected outcome in one’s favor;
d) avoid the negative aspects of unexpected outcomes.

The positional style gives the player the opportunity to develop a position until it becomes pregnant with a combination. Katsenelinboigen writes:
“As the game progressed and defense became more sophisticated the combinational style of play declined. . . . The positional style of chess does not eliminate the combinational one with its attempt to see the entire program of action in advance. The positional style merely prepares the transformation to a combination when the latter becomes feasible.”

See also


Further reading

  • Facione, P. and Facione, N., Thinking and Reasoning in Human Decision Making, The California Academic Press / Insight Assessment, 2007
  • Plous, S. The Psychology of Judgement and Decision Making New York: McGraw-Hill, 1993
  • Ullman, D. G., Making Robust Decisions Trafford, 2006
  • Levin, Mark Sh., Composite Systems Decisions, New York: Springer, 2006.


External links

  • Carnegie Mellon.
  • - Emerson, P J. Beyond the Tyranny of the Majority, a comparison of the more common voting procedures used in both decision making and elections.
  • - An online course from George Mason University providing free lectures and tools for decision making in health care.