Problem Solving And Decision
Making
Chapter 8

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

Types of Problems (Greeno)
 Problems of Inducing Structure
 Problems of Arrangement
 Problems of Transformation

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

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

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

Selecting Among Alternatives
 Strategies
 Additive
 Subtractive (Elimination of Aspects)

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

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

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

Making Decisions in Groups
 Group Polarization
 Groupthink

Group Polarization
Group Polarizationtendency to shift toward more extreme positions after group discussion
Risky Neutral Cautious

Groupthink
 Groupthinksyndrome of bad decision-making
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