1. Problem Solving And Decision Making
Chapter 8

2. Definition
Problem solving refers to active efforts to discover what must be done to achieve a goal that is not readily attainable.

3. Types of Problems (Greeno)
Problems of Inducing Structure
Problems of Arrangement
Problems of Transformation

4. Approaches to Problem Solving
Trial & Error
Heuristics
Forming Subgoals (Tower of Hanoi)
Working Backwards (Water Lilies)
Using Analogies (Tumor)
Reenvisioning the Problem

5. Barriers to Effective Problem Solving
Irrelevant (Distracting) Information
Functional Fixedness (Screw Driver)
Mental Set
Unnecessary Constraints

6. Decision Making Two types of decisions
Making choices (selecting among alternatives)
Taking chances (deciding amidst uncertainty)

7. Selecting Among Alternatives
Strategies
Additive
Subtractive (Elimination of Aspects)

8. Making “Risky” Decisions
Risky Decisions (Tversky & Kahneman)
Factors Influencing Risky Decisions
Using Probabilities
Expected Value
Subjective Utility
Factors that Affect Probability Estimates
Heuristics
Availability
Representativeness
Ignoring Base Rates
The Conjunction Fallacy
Alternative Outcomes Effect
Framing the Question

9. Humans as Decision Makers
Classic View
Irrational
Prone to errors & mistakes
Mentally limited
Evolutionary View
Specialized cognition is adaptive
Rational
Fast and Frugal heuristics work
Dual Process Theories
Intuitive Thinking
Rational Thinking

10. Reducing Regret after Decisions
$20
Told next person
tasks were fun
and interesting
Cognitive Dissonance Theory
Asked how
much they
enjoyed experiment
Boring
Tasks
Told next person
tasks were fun
and interesting $1

11. Making Decisions in Groups
Group Polarization
Groupthink

12. Group Polarization
Group Polarization- tendency to shift toward more extreme positions after group discussion
Risky
Cautious
Neutral

13. Groupthink
Groupthink- syndrome of bad decision-making
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