P11B+Slides+10--Decision+Making - A patient of...

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4/29/2010 1 Decision making Test video: http://video.google.com/videoplay?docid=-5700431505846055184# A patient of neuroscientists Bechara and Damasio Elliot was a successful business man, husband and father Brain tumor damaged the ventromedial prefrontal cortex Intellectual abilities intact But lost his job and went bankrupt What happened to this guy’s ability to reason? 2 Today How we reason and make decisions Expected utility theory Bounded rationality Reasoning heuristics and biases Representativeness heuristic Availability heuristic Anchoring & adjustment Confirmation bias The role of intuition and emotion in reasoning & decision making 3 Reasoning Using and applying knowledge to solve problems, make plans or decisions, and achieve goals What does it mean to be rational? What role do intuition and emotion play? If they play a role, is this good or bad? 4 “The heart has reasons that reason knows nothing of.” -Blaise Pascal 5 “The degree of one’s emotions varies inversely with one’s knowledge of the facts.” -Bertrand Russell Normative reasoning 6 Systematic : Use all available information; think through all possible solutions to a problem; choose the best one Abstract: No matter what the content, no matter whether we favor a position or oppose it, no matter how choices are presented, a rational person should be guided by the same reasoning principles
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4/29/2010 2 Expected Utility Theory When faced with a choice, people behave rationally: They selection the option that will yield the highest expected value (the amount they stand to gain)
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P11B+Slides+10--Decision+Making - A patient of...

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