Decision making 2026-11-05
Decision making is selecting an action or option from alternatives, using available information, goals and anticipated consequences. A descriptive theory asks how choices occur; a normative rule specifies how choices should be evaluated under stated assumptions. Choosing quickly, choosing accurately and obtaining a desirable outcome are different criteria.
Consider an invented choice between four guaranteed points and a gamble paying ten points with probability and zero otherwise. The gamble's expected value iswhich exceeds four. Maximizing expected points selects the gamble, but that rule alone does not establish how a person evaluates risk or values the outcomes. The example states a criterion instead of treating one choice as an automatic error.
Amos Tversky and Daniel Kahneman demonstrated that preferences could change when equivalent decision problems were formulated differently.[ref]
The Framing of Decisions and the Psychology of Choice by Amos Tversky and Daniel Kahneman. Original Abstract; framing-dependent preference reversals and monetary choices
A useful experimental comparison holds consequences constant while changing their presentation. A resulting choice difference challenges an explanation based only on the listed outcomes, while leaving further questions about comprehension, goals and representation to be tested.