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Week 1 - Coggle Diagram

- - - - Explain how decisions are actually made in practice, without evaluating them as correct or incorrect
      - They focus on real-world behaviour rather than idealised models
      - For example, the Prospect theory, which highlights how people deviate from rational DM
      - Can inform prescriptive theories
      - Acknowledge that individuals often rely on heuristics leading to potential biases and errors
    - - Describe the ideal decision-making process, suggesting that individuals should make choices that align with logical strategies to achieve their goals
      - They often involve complex mathematical models that may be impractical for real-world application
      - Preferences should remain unaffected by irrelevant information but real-world contradicts this
    - - Aim to improve decision-making by bridging the gap between descriptive and normative
      - Analyse differences between descriptive and normative to suggest improvements
      - Often incorporate choice architecture techniques
      - Ethical considerations arise when modifying choice architecture, such as organ donation
  - - - Refers to adherence to optimal decision-making procedures to achieve best outcomes
      - Involves all relevant info and complex mathematical formulas to arrive at decisions
      - Serves as a standard for evaluating DM processes
      - Emphasises importance of following established guidelines
      - Often contrasted with actual DM
    - - Evaluates outcomes of decisions, focusing on whether the correct choice was made
      - Assesses the effectiveness of decisions based on results rather than processes
      - Can be influenced by various factors, including biases and heuristics
      - Essential for practical implications
    - - Suggests that DM should be context-sensitive, using processes that are good enough for specific situations
      - Recognises that not all decisions require exhaustive analysis
    - - Acknowledges limitations of info, time and resources in DM
      - Argues that individuals make the best choices given their constraints, rather than striving for optimality