© 2016 by Pearson Education, Inc Chapter 10 Snap Judgments - Risks and Benefits of Heuristic Thinking THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Learning Outcomes • Explain, using examples, the difference between system-1 and system-2 decision making • Explain, using examples, each of the cognitive heuristics described in this chapter, including its potential benefits and risks THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Chapter Opening Video THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Our Two Human Decision-Making Systems • The two-systems approach to human decision making • The value of each system THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc The Two-systems Approach to Human Decision Making • System-1 thinking – Relies on situational cues, salient memories, and heuristic thinking to arrive at quick and confident judgments • System-2 thinking – Useful for judgments in unfamiliar situations, processing abstract concepts, and deliberating THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Model of Two-System Human Decision Making THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc The Value of Each System • System-1 can help get through day-to-day activities while engaging System-2 on some other topic of concern • People not store memories of system-1 while deliberating about something using System-2 • Systems are capable of overriding each other THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics: Their Benefits and Risks • Individual cognitive heuristics • Heuristics in action THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Individual Cognitive Heuristics • Cognitive heuristics: Decision-making shortcuts people rely on to expedite their judgments on what to believe or – Satisficing – Temporizing – Affect – Simulation THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Individual Cognitive Heuristics – Availability – Representation – Association – Stereotyping THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Individual Cognitive Heuristics – Us vs them – Power differential – Anchoring with adjustment – Illusion of control THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Explorer THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Individual Cognitive Heuristics – Optimistic bias – Hindsight bias – Elimination by aspect – Loss and risk aversion – All or nothing THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Discussion Question • Discuss examples of when someone gave you advice about an important matter and their only argument was that your situation reminded them of their own or someone else’s situation THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics in Action • Cognitive heuristics expedite one’s thinking by generating ideas, but not necessarily reflectively THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics and Possible Errors from Their Misapplication THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics and Possible Errors from Their Misapplication THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics and Possible Errors from Their Misapplication THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Sketchnote Video THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc  ... this chapter, including its potential benefits and risks THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Chapter Opening Video THINK CRITICALLY, FACIONE & GITTENS © 2016. .. reflectively THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics and Possible Errors from Their Misapplication THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson... Misapplication THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson Education, Inc Heuristics and Possible Errors from Their Misapplication THINK CRITICALLY, FACIONE & GITTENS © 2016 by Pearson