The Psychology of

Decision-Making
Understanding the psychological factors that influence our choices is crucial
for making better decisions. This seminar will explore the intricacies of
decision-making, from the biases that cloud our judgment to the heuristics
we rely on.

by Raglan Richards
Cognitive Biases and Heuristics
Cognitive biases are systematic errors in thinking that can lead to faulty decisions. These include
confirmation bias, anchoring bias, and availability bias. Heuristics, on the other hand, are mental shortcuts
that simplify decision-making but can also lead to biases.

1 Confirmation Bias 2 Anchoring Bias

We tend to seek out information that Our initial judgments heavily influence our
confirms our existing beliefs, while ignoring subsequent decisions, even when presented
information that contradicts them. with new information.

3 Availability Bias 4 Framing Effects

We rely on information that is easily recalled The way a decision is framed can
from memory, even if it is not the most significantly impact our choices, even if the
relevant or accurate. underlying options are the same.
Improving Decision-Making Processes
By understanding cognitive biases and heuristics, we can develop strategies to mitigate their
influence. This involves actively seeking diverse perspectives, challenging our assumptions, and
using decision-making frameworks to ensure a more rational and objective approach.

1 Awareness
Recognizing our own cognitive biases and heuristics is the first step to
improving our decision-making.

2 Critical Thinking
Developing critical thinking skills involves questioning our assumptions,
considering alternative perspectives, and evaluating the quality of evidence.

3 Decision-Making Frameworks
Using structured frameworks, such as cost-benefit analysis or decision trees,
can help us make more informed and logical choices.