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Perception and Individual Decision Making - Coggle Diagram
Perception and Individual Decision Making
FACTORS THAT INFLUENCE PERCEPTION
Perception
a process by which individuals organize and interpret their sensory impressions to give meaning to their environment
Attribution Theory
Definition
suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused
Determination depends on three factors
Distinctiveness
Consensus
Consistency
Internally caused
those that are believed to be under the personal control of the individual
Externally caused
resulting from outside causes
Fundamental attribution error
underestimate the influence of external factors and overestimate the influence of internal or personal factors
Self-serving bias
Individuals attribute their own successes to internal factors
Selective perception
Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived
Since we can’t observe everything going on around us, we engage in selective perception
The Link Between Perception and Decision Making
Individuals make decisions—choosing from two or more alternatives
Decision making occurs as a reaction to a problem
Rational Model of Decision Making Versus Bounded Rationality and Intuition
Assumptions of the Rational Model
Has complete information
identify all the relevant options in an unbiased manner
Chooses the option with the highest utility
Bounded Rationality
People satisfice—they seek solutions that are satisfactory and sufficient
They construct simplified models that extract the essential features
Intractable problem
a problem that may change entirely or become irrelevant before we finish the process of organizing our thoughts, gathering information, analyzing the information, and making judgments or decisions
Intuitive decision making
occurs outside conscious thought; it relies on holistic associations, or links between disparate pieces of information, is fast, and is affectively charged, meaning it usually engages the emotions
Reducing Biases and Errors
Focus on Goals
Look for Information That Disconfirms Your Beliefs
Do Not Try to Create Meaning out of Random Events
Increase Your Options
Common Biases and Errors in Decision Making
Overconfidence Bias
Anchoring Bias
Confirmation Bias
Availability Bias
Escalation of Commitment
Randomness Error
Risk Aversion
Hindsight Bias
Individual Differences
Personality
Intuition
Self-esteem
Narcissism
Gender
Mental Ability
Cultural Differences
3 ETHICAL DECISION CRITERIA
Utilitarianism
decisions are made solely on the basis of their outcomes or consequences
whistleblowers
Behavioral ethics
Lying