Decision-making


Within the field of psychology, decision-making is understood as a cognitive process involving the evaluation of multiple options to arrive at a chosen belief or action, and this process is fundamentally shaped by the decision-maker's underlying values, preferences, and beliefs.

⭐ In the context of psychology, decision-making is considered a cognitive process most directly influenced by what internal factors?


⭐ Core Definition: Decision-making

In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either rational or irrational. The decision-making process is a reasoning process based on assumptions of values, preferences and beliefs of the decision-maker. Every decision-making process produces a final choice, which may or may not prompt action.

Research about decision-making is also published under the label problem solving, particularly in European psychological research.

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In the context of psychology, decision-making is considered a cognitive process most directly influenced by what internal factors?
HINT: The decision-making process relies on an individual's internal framework of values, preferences, and beliefs to assess alternatives and ultimately select a course of action.

In this Dossier

Decision-making in the context of Politics

Politics is the set of activities that are associated with making decisions in groups, or other forms of power relations among individuals, such as the distribution of status or resources.The branch of social science that studies politics and government is referred to as political science.

Politics may be used positively in the context of a "political solution" which is compromising and non-violent, or descriptively as "the art or science of government", but the word often also carries a negative connotation. The concept has been defined in various ways, and different approaches have fundamentally differing views on whether it should be used extensively or in a limited way, empirically or normatively, and on whether conflict or co-operation is more essential to it.

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Decision-making in the context of Judgment (law)

In law, a judgment is a decision of a court regarding the rights and liabilities of parties in a legal action or proceeding. Judgments also generally provide the court's explanation of why it has chosen to make a particular court order.

Speakers of British English tend to use the term at the appellate level as synonymous with judicial opinion. American English speakers prefer to maintain a clear distinction between the opinion of an appellate court (setting forth reasons for the disposition of an appeal) and the judgment of an appellate court (the pronouncement of the disposition itself).

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Decision-making in the context of Deliberative democracy

Deliberative democracy or discursive democracy is a form of democracy in which deliberation is central to decision-making. Deliberative democracy seeks quality over quantity by limiting decision-makers to a smaller but more representative sample of the population that is given the time and resources to focus on one issue.

It often adopts elements of both consensus decision-making and majority rule. Deliberative democracy differs from traditional democratic theory in that authentic deliberation, not mere voting, is regarded as the primary source of legitimacy for the law. Deliberative democracy is related to consultative democracy, in which public consultation with citizens is central to democratic processes. The distance between deliberative democracy and concepts like representative democracy or direct democracy is debated. While some practitioners and theorists use deliberative democracy to describe elected bodies whose members propose and enact legislation, Hélène Landemore and others increasingly use deliberative democracy to refer to decision-making by randomly-selected lay citizens with equal power.

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Decision-making in the context of Cognitive

Cognitions are mental activities that deal with knowledge. They encompass psychological processes that acquire, store, retrieve, transform, or otherwise use information. Cognitions are a pervasive part of mental life, helping individuals understand and interact with the world.

Cognitive processes are typically categorized by their function. Perception organizes sensory information about the world, interpreting physical stimuli, such as light and sound, to construct a coherent experience of objects and events. Attention prioritizes specific aspects while filtering out irrelevant information. Memory is the ability to retain, store, and retrieve information, including working memory and long-term memory. Thinking encompasses psychological activities in which concepts, ideas, and mental representations are considered and manipulated. It includes reasoning, concept formation, problem-solving, and decision-making. Many cognitive activities deal with language, including language acquisition, comprehension, and production. Metacognition involves knowledge about knowledge or mental processes that monitor and regulate other mental processes. Classifications also distinguish between conscious and unconscious processes and between controlled and automatic ones.

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Decision-making in the context of Value theory

Value theory, also called axiology, studies the nature, sources, and types of values. It is a branch of philosophy and an interdisciplinary field closely associated with social sciences such as economics, sociology, anthropology, and psychology.

Value is the worth of something, usually understood as covering both positive and negative degrees corresponding to the terms good and bad. Values influence many human endeavors related to emotion, decision-making, and action. Value theorists distinguish various types of values, like the contrast between intrinsic and instrumental value. An entity has intrinsic value if it is good in itself, independent of external factors. An entity has instrumental value if it is useful as a means leading to other good things. Other classifications focus on the type of benefit, including economic, moral, political, aesthetic, and religious values. Further categorizations distinguish absolute values from values that are relative to something else.

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Decision-making in the context of Moral values

Morality (from Latin moralitas 'manner, character, proper behavior') is the categorization of intentions, decisions and actions into those that are proper, or right, and those that are improper, or wrong. Morality can be a body of standards or principles derived from a code of conduct from a particular philosophy, religion or culture, or it can derive from a standard that is understood to be universal. Morality may also be specifically synonymous with "goodness", "appropriateness" or "rightness".

Moral philosophy includes meta-ethics, which studies abstract issues such as moral ontology and moral epistemology, and normative ethics, which studies more concrete systems of moral decision-making such as deontological ethics and consequentialism. An example of normative ethical philosophy is the Golden Rule, which states: "One should treat others as one would like others to treat oneself."

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Decision-making in the context of Normative

Normativity concerns the standards of what people ought to do, believe, or value. It is a quality of rules, judgments, or concepts that prescribe how things should be or what individuals may, must, or must not do. Normative claims express what ought to be the case, such as "you should not smoke". They contrast with descriptive claims about what is the case, such as "you smoked yesterday". Normativity shapes many everyday activities, such as decision-making, evaluating outcomes, criticizing others, and justifying actions.

Researchers discuss many types of normativity. Practical normativity is about what to do, while theoretical normativity concerns what to believe. Deontic normativity deals with what is allowed, required, or forbidden, whereas evaluative normativity addresses the values underlying normative assessments. Objective normativity encompasses requirements that do not depend on personal views, in contrast to subjective normativity, which is about standards relative to subjective perspectives. A normative assessment is pro tanto if it is partial by only taking certain aspects into account, unlike all-things-considered judgments, which factor in all relevant aspects. Other distinctions are based on the domain of assessment, such as moral, social, legal, and linguistic norms. Some categories may overlap, and there are academic disagreements about whether all these types are genuine forms of normativity.

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Decision-making in the context of Argumentation theory

Argumentation theory is the interdisciplinary study of how conclusions can be supported or undermined by premises through logical reasoning. With historical origins in logic, dialectic, and rhetoric, argumentation theory includes the arts and sciences of civil debate, dialogue, conversation, and persuasion. It studies rules of inference, logic, and procedural rules in both artificial and real-world settings.

Argumentation includes various forms of dialogue such as deliberation and negotiation which are concerned with collaborative decision-making procedures. It also encompasses eristic dialogue, the branch of social debate in which victory over an opponent is the primary goal, and didactic dialogue used for teaching. This discipline also studies the means by which people can express and rationally resolve or at least manage their disagreements.

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Decision-making in the context of Heuristics

A heuristic or heuristic technique (problem solving, mental shortcut, rule of thumb) is any approach to problem solving that employs a pragmatic method that is not fully optimized, perfected, or rationalized, but is nevertheless "good enough" as an approximation or attribute substitution. Where finding an optimal solution is impossible or impractical, heuristic methods can be used to speed up the process of finding a satisfactory solution. Heuristics can be mental shortcuts that ease the cognitive load of making a decision.

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Decision-making in the context of Logic of appropriateness

The logic of appropriateness is a theoretical perspective to explain human decision-making. It proposes that decisions and behavior follow from rules of appropriate behavior for a given role or identity. These rules are institutionalized in social practices and sustained over time through learning. People adhere to them because they see them as natural, rightful, expected, and legitimate. In other words, the logic of appropriateness assumes that actors decide on the basis of what social norms deem right rather than what cost-benefit calculations suggest best. The term was coined by organization theorists James G. March and Johan Olsen. They presented the argument in two prominent articles published by the journals Governance in 1996 and International Organization in 1998.

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Decision-making in the context of Organizational theory

Organizational theory refers to a series of interrelated concepts that involve the sociological study of the structures and operations of formal social organizations. Organizational theory also seeks to explain how interrelated units of organization either connect or do not connect with each other. Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of an individual. The behavior organizational theory often focuses on is goal-directed. Organizational theory covers both intra-organizational and inter-organizational fields of study.

In the early 20th century, theories of organizations initially took a rational perspective but have since become more diverse. In a rational organization system, there are two significant parts: Specificity of Goals and Formalization. The division of labor is the specialization of individual labor roles, associated with increasing output and trade. Modernization theorist Frank Dobbin wrote that "modern institutions are transparently purposive and that we are in the midst of an extraordinary progression towards more efficiency." Max Weber's conception of bureaucracy is characterized by the presence of impersonal positions that are earned and not inherited, rule-governed decision-making, professionalism, chain of command, defined responsibility, and bounded authority. Contingency theory holds that an organization must try to maximize performance by minimizing the effects of various environmental and internal constraints, and that the ability to navigate this requisite variety may depend upon the development of a range of response mechanisms.

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Decision-making in the context of Evaluation

In common usage, evaluation is a systematic determination and assessment of a subject's merit, worth and significance, using criteria governed by a set of standards. It can assist an organization, program, design, project or any other intervention or initiative to assess any aim, realizable concept/proposal, or any alternative, to help in decision-making; or to generate the degree of achievement or value in regard to the aim and objectives and results of any such action that has been completed.

The primary purpose of evaluation, in addition to gaining insight into prior or existing initiatives, is to enable reflection and assist in the identification of future change. Evaluation is often used to characterize and appraise subjects of interest in a wide range of human enterprises, including the arts, criminal justice, foundations, non-profit organizations, government, health care, and other human services. It is long term and done at the end of a period of time.

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Decision-making in the context of Uncertainty

Uncertainty or incertitude refers to situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown, and is particularly relevant for decision-making. Uncertainty arises in partially observable or stochastic or complex or dynamic environments, as well as due to ignorance, indolence, or both. It arises in any number of fields, including insurance, philosophy, physics, statistics, economics, entrepreneurship, finance, medicine, psychology, sociology, engineering, metrology, meteorology, ecology and information science.

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Decision-making in the context of Game theory

Game theory is the study of mathematical models of strategic interactions. It has applications in many fields of social science, and is used extensively in economics, logic, systems science and computer science. Initially, game theory addressed two-person zero-sum games, in which a participant's gains or losses are exactly balanced by the losses and gains of the other participant. In the 1950s, it was extended to the study of non zero-sum games, and was eventually applied to a wide range of behavioral relations. It is now an umbrella term for the science of rational decision making in humans, animals, and computers.

Modern game theory began with the idea of mixed-strategy equilibria in two-person zero-sum games and its proof by John von Neumann. Von Neumann's original proof used the Brouwer fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathematical economics. His paper was followed by Theory of Games and Economic Behavior (1944), co-written with Oskar Morgenstern, which considered cooperative games of several players. The second edition provided an axiomatic theory of expected utility, which allowed mathematical statisticians and economists to treat decision-making under uncertainty.

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