Psychology of Decision

It has recently been argued that a person’s moral judgments (about both their own and others’ actions) are constrained by the nature and extent of their relevant ignorance and, thus, that such judgments are determined in the first instance by the person’s epistemic circumstances. It has been argued, in other words, that the epistemic is logically prior to other normative (e.g., ethical, prudential, pecuniary) considerations in human decision-making, that these other normative considerations figure in decision-making only after (logically and temporally) (...) relevant ignorance has constrained the decision-maker’s menu of options. If this is right, then a person’s moral judgments in some set of circumstances should vary with their knowledge and ignorance of these circumstances. In this study, we test the hypothesis of the logical priority of the epistemic. We describe two experiments in which subjects’ knowledge and ignorance of relevant consequences were manipulated. In the second experiment, we also compared the effect of ignorance on moral judgments with that of personal force, a factor previously shown to influence moral judgments. We found broad empirical support for the armchair arguments that epistemic considerations are logically prior to normative considerations. (shrink)

Recent work in judgment and decisionmaking has stressed that institutions, like individuals, often rely on decisionmaking heuristics. But most of the institutional decisionmaking heuristics studied to date are highly firm- and industry-specific. This contrasts to the individual case, in which many heuristics are general-purpose rules suitable for a wide range of decision problems. Are there also general-purpose heuristics for institutional decisionmaking? In this paper, I argue that a number of methods recently developed for decisionmaking under deep uncertainty have a good (...) claim to be understood as general-purpose decisionmaking heuristics suitable for a broad range of institutional decision problems. (shrink)

Bounded rationality gets a bad rap in epistemology. It is argued that theories of bounded rationality are overly context‐sensitive; conventionalist; or dependent on ordinary language (Carr, 2022; Pasnau, 2013). In this paper, I have three aims. The first is to set out and motivate an approach to bounded rationality in epistemology inspired by traditional theories of bounded rationality in cognitive science. My second aim is to show how this approach can answer recent challenges raised for theories of bounded rationality. My (...) third aim is to clarify the role of rational ideals in bounded rationality. (shrink)

_Framing effects_ concern the having of different attitudes towards logically or necessarily equivalent contents. Framing is of crucial importance for cognitive science, behavioral economics, decision theory, and the social sciences at large. We model a typical kind of framing, grounded in (i) the structural distinction between beliefs activated in working memory and beliefs left inactive in long term memory, and (ii) the topic- or subject matter-sensitivity of belief: a feature of propositional attitudes which is attracting growing research attention. We introduce (...) a class of models featuring (i) and (ii) to represent, and reason about, agents whose belief states can be subject to framing effects. We axiomatize a logic which we prove to be sound and complete with respect to the class. (shrink)

It has recently been argued that a person’s moral judgments (about both their own and others’ actions) are constrained by the nature and extent of their relevant ignorance and, thus, that such judgments are determined in the first instance by the person’s epistemic circumstances. It has been argued, in other words, that the epistemic is logically prior to other normative (e.g., ethical, prudential, pecuniary) considerations in human decision-making, that these other normative considerations figure in decision-making only after (logically and temporally) (...) relevant ignorance has constrained the decision-maker’s menu of options. If this is right, then a person’s moral judgments in some set of circumstances should vary with their knowledge and ignorance of these circumstances. In this study, we test the hypothesis of the logical priority of the epistemic. We describe two experiments in which subjects’ knowledge and ignorance of relevant consequences were manipulated. In the second experiment, we also compared the effect of ignorance on moral judgments with that of personal force, a factor previously shown to influence moral judgments. We found broad empirical support for the armchair arguments that epistemic considerations are logically prior to normative considerations. (shrink)

Hot-cold empathy gaps are a pervasive phenomena wherein one’s predictions about others tend to skew ‘in the direction’ of one’s own current visceral states. For instance, when one predicts how hungry someone else is, one’s prediction will tend to reflect one’s own current hunger state. These gaps also obtain intrapersonally, when one attempts to predict what one oneself would do at a different time. In this paper, we do three things: We draw on empirical evidence to argue that so-called hot-cold (...) empathy gaps arise when one projects one’s own current state into a simulation about another. Second, we argue that this process does not typically confer knowledge, even when the predictions it produces happen to be accurate. Third, we suggest that these results can be used to develop a challenge for L.A. Paul's view that authentic action sometimes requires subjective knowledge of one’s own values and how these values relate to relevant outcomes. We then sketch an alternative view of the epistemic grounds of authenticity, one on which authenticity requires a kind of understanding. The relevant form of understanding can be achieved by subjective knowledge but can also be achieved elsewise, such as through testimony from a close friend about what one values. (shrink)

My aim in this paper is to develop a unified solution to two paradoxes of bounded rationality. The first is the regress problem that incorporating cognitive bounds into models of rational decisionmaking generates a regress of higher-order decision problems. The second is the problem of rational irrationality: it sometimes seems rational for bounded agents to act irrationally on the basis of rational deliberation. I review two strategies which have been brought to bear on these problems: the way of weakening which (...) responds by weakening rational norms, and the way of indirection which responds by letting the rationality of behavior be determined by the rationality of the deliberative processes which produced it. Then I propose and defend a third way to confront the paradoxes: the way of level separation. (shrink)

This project retraces activations of Kierkegaard in the development of polit­ical theology. It suggests alternative modes of states of exception than those attributed to him by Schmitt, Taubes and Agamben. Several Kierkegaardian themes open themselves to 'something like pure potential' in Agamben, namely: living death, animality, criminality, auto-constitution, modification, liturgy, love and certain articulations of improbabilities. Attention is drawn to a modal ontology and auto-constitution at work in Kierkegaard's writings, as well as a complicated and indissociable operation between killing and (...) letting-live in legalist exceptionalism, comparable to similar functions found in Foucault regarding the biopowers and necropolitics of territorial and governmental apparatuses. It closes in consideration of Kierkegaard's critique of enumeration, large numbers, and statistical probability alongside contemporary tele-technoscientific social controls via the online datafication of people by surveillance or platform capitalisms. After Kierkegaard, such apparatuses are perhaps suspect as calculated to tranquilize humanity into more docile subhumans as it fools folk into becoming part of its numbers. (*Accompanying file includes only front matter, abstract, and endnotes*). (shrink)

Epistemic burdens – the nature and extent of our ignorance (that and how) with respect to various courses of action – serve to determine our incentive structures. Courses of action that seem to bear impossibly heavy epistemic burdens are typically not counted as options in an actor’s menu, while courses of action that seem to bear comparatively heavy epistemic burdens are systematically discounted in an actor’s menu relative to options that appear less epistemically burdensome. That ignorance serves to determine what (...) counts as an option means that epistemic considerations are logically prior to moral, prudential, and economic considerations: in order to have moral, prudential, or economic obligations, one must have options, and epistemic burdens serve to determine our options. One cannot have obligations without doing some epistemic work. We defend this claim on introspective grounds. We also consider how epistemic burdens distort surrogate decision-making. The unique epistemology of surrogate cases makes the priority of the epistemic readily apparent. We then argue that anyone who accepts a principle similar to ought implies can is committed to the logical priority of the epistemic. We also consider and reject several possible counterarguments. -/- . (shrink)

What happens when we are uncertain about what we want, feel or whish for? How should we understand uncertainty in introspection? This paper reconstructs and critically assess two answers to this question frequently found in the secondary literature on Wittgenstein: indecision and self-deception (Hacker 1990, 2012; Glock 1995, 1996). Such approaches seek to explain uncertainty in introspection in a way which is completely distinct from uncertainty about the ‘outer world’. I argue that in doing so these readings fail to account (...) for the substantial role the intellect seems to play in the process of resolving such uncertainties. I then attempt to show that Wittgenstein’s remarks connecting psychological vocabulary, behaviour and public criteria (e. g. PI 2009: 580) provide alternative ways for thinking about uncertainty in introspection which allow for a substantial role of the intellect. (shrink)

We apply the analysis that we have developed over the course of several publications on the significance of ignorance for decision-making, especially in surrogate (and, thus, in political) contexts, to political decision-making, such as it has been, during the COVID-19 pandemic (see Scheall 2019; Crutchfield and Scheall 2019; Scheall and Crutchfield 2020; Scheall 2020). Policy responses to the coronavirus constitute a case study of the problem of policymaker ignorance. We argue that political responses to the virus cannot be explained by (...) assuming that the interests of policymakers were at loggerheads with those of their constituents at the beginning of the crisis. In order to explain the responses of policymakers, it is necessary to recognize the effects of relevant ignorance on their incentives to pursue different policy objectives. We discuss the knowledge that policymakers required at the start of the pandemic in order to deliberately realize the goal of limiting overall human suffering and the spontaneous forces that could have facilitated the realization of this goal. The problem of policymaker ignorance implies that policymakers have not earnestly pursued the goal of limiting overall suffering due to the novel coronavirus, but have repeatedly resorted to the pursuit of relatively less epistemically burdensome goals. The problem of policymaker ignorance explains why policymakers have focused primarily on limiting one kind of suffering – physical suffering due to the virus – and have mostly ignored related kinds of suffering, i.e., the economic, sociological, psychological, and physical suffering caused by policies to limit physical suffering from the virus. The problem of policymaker ignorance also helps to explain why policymakers relied on the relatively blunt instrument of economic lockdown rather than more focused protection policies, and why they continue to resort to lockdowns, despite the emerging scientific evidence of their ineffectiveness at mitigating physical suffering due to the virus. (shrink)

Vaccination complacency occurs when perceived risks of vaccine-preventable diseases are sufficiently low so that vaccination is no longer perceived as a necessary precaution. Disease outbreaks can once again increase perceptions of risk, thereby decrease vaccine complacency, and in turn decrease vaccine hesitancy. It is not well understood, however, how change in perceived risk translates into change in vaccine hesitancy. -/- We advance the concept of vaccine propensity, which relates a change in willingness to vaccinate with a change in perceived risk (...) of infection—holding fixed other considerations such as vaccine confidence and convenience. (shrink)

Should economics study the psychological basis of agents' choice behaviour? I show how this question is multifaceted and profoundly ambiguous. There is no sharp distinction between "mentalist'' answers to this question and rival "behavioural'' answers. What's more, clarifying this point raises problems for mentalists of the "functionalist'' variety (Dietrich and List, 2016). Firstly, functionalist hypotheses collapse into hypotheses about input--output dispositions, I show, unless one places some unwelcome restrictions on what counts as a cognitive variable. Secondly, functionalist hypotheses make some (...) risky commitments about the plasticity of agents' choice dispositions. (shrink)

Berger (forthcoming) states that moral intimacy is important in applying the best interests standard. But what he calls moral intimacy requires that someone has overcome epistemic burdens needed to represent the patient. We argue elsewhere that good surrogate decision-making is first and foremost a matter of overcoming epistemic burdens, or those obstacles that stand in the way of a surrogate decision-maker knowing what a patient wants and how to satisfy those preferences. Berger’s notion of moral intimacy depends on epistemic intimacy: (...) the fact that a surrogate's epistemic burdens with respect to the best interests of the incapacitated patient have been adequately surmounted, plus some other feature. Thus, where a particular patient-surrogate relationship fails to be morally intimate, what is lacking is either epistemic intimacy or this second feature. Furthermore, Berger uses the notion of moral intimacy as an explanans for the application of the best interests standard. We argue that the notions of epistemic intimacy and epistemic burdens not only help to explain the notion of moral intimacy, but also better explain the application of the best interests standard. Given the role of epistemic burdens and the epistemic intimacy that overcoming them enables, bioethicists and physicians should consider a surrogate’s epistemic standing relative to the patient’s best interests before pronouncing on the former’s ethical probity. (shrink)

According to a consensus view in philosophy, “deciding” and “intending” are synonymous expressions. Researchers have recently challenged this view with the discovery of a counterexample in which ordinary speakers attribute deciding without intending. The aim of this paper is to investigate the strengths and limits of this discovery. The result of this investigation revealed that the evidence challenging the consensus view is strong. We replicate the initial finding against consensus and extend it by utilizing several new measures, materials, and procedures. (...) Together this evidence strongly suggests that “deciding” is not synonymous with “intending” in ordinary language and that the consensus view should be rejected. (shrink)

I provide a characterization of weakly pseudo-rationalizable choice functions---that is, choice functions rationalizable by a set of acyclic relations---in terms of hyper-relations satisfying certain properties. For those hyper-relations Nehring calls extended preference relations, the central characterizing condition is weaker than (hyper-relation) transitivity but stronger than (hyper-relation) acyclicity. Furthermore, the relevant type of hyper-relation can be represented as the intersection of a certain class of its extensions. These results generalize known, analogous results for path independent choice functions.

We aim to establish the following claim: other factors held constant, the relative weights of the epistemic burdens of competing treatment options serve to determine the options that patient surrogates pursue. Simply put, surrogates confront an incentive, ceteris paribus, to pursue treatment options with respect to which their knowledge is most adequate to the requirements of the case. Regardless of what the patient would choose, options that require more knowledge than the surrogate possesses (or is likely to learn) will either (...) be neglected altogether or deeply discounted in the surrogate’s incentive structure. We establish this claim by arguing that the relation between epistemic burdens and incentives in decision-making is a general feature of surrogate decision-making. After establishing the claim, we draw out some of the implications for surrogate decision-making in medicine and offer philosophical and psychological explanations of the phenomenon. (shrink)

Ramsey (1926) sketches a proposal for measuring the subjective probabilities of an agent by their observable preferences, assuming that the agent is an expected utility maximizer. I show how to extend the spirit of Ramsey's method to a strictly wider class of agents: risk-weighted expected utility maximizers (Buchak 2013). In particular, I show how we can measure the risk attitudes of an agent by their observable preferences, assuming that the agent is a risk-weighted expected utility maximizer. Further, we can leverage (...) this method to measure the subjective probabilities of a risk-weighted expected utility maximizer. (shrink)

A decision maker (DM) selects a project from a set of alternatives with uncertain productivity. After the choice, she observes a signal about productivity and decides how much effort to put in. This paper analyzes the optimal decision problem of the DM who rationally filters information to deal with her post-decision cognitive dissonance. It is shown that the optimal effort level for a project can be affected by unchosen projects in her choice set, and the nature of the choice set-dependence (...) is determined by the signal structure. Some comparative statics of choice set-dependence is also provided. Finally, based on the results, the optimal choice set design is also explored. This paper offers a simple framework to explain the experimental finding in psychology that people’s effort level for a project can be enhanced when the project is chosen by themselves rather than by others. (shrink)

The philosophy of animal rights is often characterized as an exclusively justice oriented approach to animal liberation that is unconcerned with, and moreover suspicious of, moral emotions, like sympathy, empathy, and compassion. I argue that the philosophy of animal rights can, and should, acknowledge that compassion plays an integral role in animal liberation discourse and theory. Because compassion motivates moral actors to relieve the serious injustices that other animals face, or, at the very least, compassion moves actors not to participate (...) in or cause these injustices, the philosophy of animal rights can and should recognize both a duty to cultivate compassion and a duty to promote compassion. Contra to feminist critiques of Regan’s justice-approach to ethics, the philosophy of animal rights is not committed to eschewing the moral emotions. (shrink)

To what extent do our beliefs, and how strongly we hold them, depend upon how they matter to us, on what we take to be at stake on them? The idea that beliefs are sometimes stake-sensitive (Armendt 2008, 2013) is further explored here, with a focus on whether beliefs may be stake-sensitive and rational. In contexts of extended deliberation about what to do, beliefs and assessments of options interact. In some deliberations, a belief about what you will do may rationally (...) influence your estimate of the value of doing it; deliberation dynamics provides a framework for modeling such interactions. A distinction is drawn between sensitivity to the magnitude of the stakes, and sensitivity to the shape of the stakes. Contexts of extended deliberation are settings in which some beliefs that p rationally depend on the shape of the stakes on p. The dependence is either rational stake-sensitivity or an outcome of rational learning; empirical evidence concerning contexts of deliberation may lead us to model rational beliefs in one way or the other. (shrink)

In this paper, I examine the decision-theoretic status of risk attitudes. I start by providing evidence showing that the risk attitude concepts do not play a major role in the axiomatic analysis of the classic models of decision-making under risk. This can be interpreted as reflecting the neutrality of these models between the possible risk attitudes. My central claim, however, is that such neutrality needs to be qualified and the axiomatic relevance of risk attitudes needs to be re-evaluated accordingly. Specifically, (...) I highlight the importance of the conditional variation and the strengthening of risk attitudes, and I explain why they establish the axiomatic significance of the risk attitude concepts. I also present several questions for future research regarding the strengthening of risk attitudes. (shrink)

The article addresses the problem of making life decisions by people during the period of late adolescence; describes the specifics of the influence of various factors, in particular, the sense of life orientations, life position, impulsivity; the questions of the influence of fear on the process of making life decisions by young people; and the influence of various types of fears on this process. -/- The results of the research show that the influence of fears on the process of making (...) life decisions during the late adolescence is largely determined by characteristics of this age period, such as the formation of identity and the affirmation of one’s own self in the society. Thus, the most influential types of fears during this period are sociophobia, which consists of fear of social opinions and fear of social interactions; and fortunophobia (fear of fate). Sociophobia has such a powerful influence because young people go through the process of separation from their parents and joining society as separate individuals, and therefore the society’s opinion about them as an identity becomes very important to them. Fortunophobia is essentially the fear of the unknown and unavoidable fate, which is an inseparable part of making any life decision, especially in such a young age when people are only making their first crucial life decisions. According to the conducted research, meaningfulness of life has a reverse effect on the impact of fears on making life decisions, which means that with a greater meaningfulness of the individual’s life, the impact of fears is reduced. At the same time, impulsiveness has a direct effect, i.e. the more impulsive an individual is, the more influence fear has on their making life decisions. Life position of “Me + World –” is the least influenced by fears during the process of making life decisions. Also, the influence of fears appears to be more of a motivating factor rather than constraining, which forces young people to act and change their lives. (shrink)

This case takes place in the context of a small to medium-sized retail clothing firm. It examines the latest trends in social media marketing technology and the potential ethical issues regarding privacy infringement and behavioral control of teenagers and young adults that such technology presents. The scenario invites students to consider how much, if at all, such marketing practices should be resisted going forward.

People often engage in “offline simulation”, considering what would happen if they performed certain actions in the future, or had performed different actions in the past. Prior research shows that these simulations are biased towards actions a person considers to be good—i.e., likely to pay off. We ask whether, and why, this bias might be adaptive. Through computational experiments we compare five agents who differ only in the way they engage in offline simulation, across a variety of different environment types. (...) Broadly speaking, our experiments reveal that simulating actions one already regards as good does in fact confer an advantage in downstream decision making, although this general pattern interacts with features of the environment in important ways. We contrast this bias with alternatives such as simulating actions whose outcomes are instead uncertain. (shrink)

A cognitivist account of decision-making views choice behaviour as a serial process of deliberation and commitment, which is separate from perception and action. By contrast, recent work in embodied decision-making has argued that this account is incompatible with emerging neurophysiological data. We argue that this account has significant overlap with an embodied account of predictive processing, and that both can offer mutual development for the other. However, more importantly, by demonstrating this close connection we uncover an alternative perspective on the (...) nature of decision-making, and the mechanisms that underlie our choice behaviour. This alternative perspective allows us to respond to a challenge for predictive processing, which claims that the satisfaction of distal goal-states is underspecified. Answering this challenge requires the adoption of an embodied perspective. (shrink)

Five experiments demonstrate the central role of knowledge attributions in social evaluations. In Experiments 1–3, we manipulated whether an agent believes, is certain of, or knows a true proposition and asked people to rate whether the agent should perform a variety of actions. We found that knowledge, more so than belief or certainty, leads people to judge that the agent should act. In Experiments 4–5, we investigated whether attributions of knowledge or certainty can explain an important finding on how people (...) act based on statistical evidence, known as “the Wells effect”. We found that knowledge attributions, but not certainty attributions, mediate this effect on decision making. 2018 APA, all rights reserved). (shrink)

Forcing occurs when a magician influences the audience's decisions without their awareness. To investigate the mechanisms behind this effect, we examined several stimulus and personality predictors. In Study 1, a magician flipped through a deck of playing cards while participants were asked to choose one. Although the magician could influence the choice almost every time (98%), relatively few (9%) noticed this influence. In Study 2, participants observed rapid series of cards on a computer, with one target card shown longer than (...) the rest. We expected people would tend to choose this card without noticing that it was shown longest. Both stimulus and personality factors predicted the choice of card, depending on whether the influence was noticed. These results show that combining real-world and laboratory research can be a powerful way to study magic and can provide new methods to study the feeling of free will. (shrink)

This chapter introduces a research-based conceptual framework for the study of the inner psychosocial reality of business enterprises. It is called the Inner Organizational Ecosystem Approach (IOEA). This model is systemic in nature, and it defines the basic features of small and medium-size enterprises, such as elements, structures, borders, social actors, organizational climate, processes and resources. Further, it also covers the dynamics of psychosocial reality, processes, emergent qualities and the higher-order subsystems of the overall organizational ecosystem, including the global business (...) environment, which is understood as a macro-system where all the individual organizational ecosystems co-exist. In the applied part of the chapter, cognitive changes emerging within systemic leadership training are defined. Participation in systemic training causes changes in the cognitive processing of reality, more specifically improvements in layer-based framing, relativistic contextual orientation, temporality drift and meaning generation. All of these changes are components of the systemic mind, which is a concept newly proposed and defined by the present study. The systemic mind is a living matrix that is extremely open to acquiring new skills and new patterns of thinking, analyzing and meaning generation. It is processual and it can be considered as an ongoing process of continuous absorption of new cognitive patterns. Both the Inner Organizational Ecosystem Approach and the concept of the systemic mind provide a new theoretical background for empirical investigation in the fields of systemic and systems psychology, complexity psychology, organizational psychology, economic anthropology and the social anthropology of work. (shrink)

This chapter makes it clear that a significant element of both leadership and decision making is the development aspect. Leaders develop in their decision making by being confronted with difficult decision situations. However, they also develop through various forms of systemized training and education. Different leaders tend to develop in different directions. For this reason, one can identify a number of key leadership styles based on different ways of leading. These different styles are appropriate for various types of organization. Some (...) organizations require a strict and authoritative style, while others are in greater need of a more democratic style. Senior leaders often have the capacity to switch between different leadership styles depending on how the situation develops. In addition, there are a number of key decision-making roles that leaders are expected to manage. These include the role of entrepreneur, problem-solver, resource-allocator and negotiator. Leaders must also learn to work with clarity, conviction, courage, and communication in order to facilitate their decisions. Research shows that leaders who face severe adversity in their careers often are forced to make many difficult decisions. As a result they develop. Being forced to make difficult decisions actually leads to reflection, self-awareness and self-knowledge of one’s own values. Leaders also develop by communicating their problems in a structured way with more experienced colleagues. The fact that leaders develop by making difficult decisions leads to various forms of action having a central role. It is by putting decisions into action that leaders develop, as well as by reflecting on what alternative decisions could have been made. An action perspective on leadership decisions is closely linked to the concept of sense-making. This phenomenon implies observation, action, revision and communication in the aftermath of a decision. There is research indicating that reflection, critical thinking, intuition, ethics and communication are important dimensions of leaders and decision makers who are generally perceived as wise. -/- . (shrink)

This chapter illustrates that in order to reach a decision a leader must decide which persons should be involved in the process and when. A relatively common method of involving others is delegating the decision to a group. A main objective of this is often to generate as many innovative ideas as possible, and different techniques can be employed for this, including brainstorming. The proposal generated must then be validated by the group using different criteria on the basis of which (...) it is then relatively easy to filter out proposals that do not reach the goals that have been set. However, a leader needs to collect additional information in order to reach a decision. By the use of information technology vast amounts of information may be accumulated. Thus, different kinds of filtering or weeding methods must be used in order to quickly obtain relevant information. This information can help leaders create forecasts and minimize risks. They must also be able to present their ideas in the most attractive way possible in order to be heard and arrive at decisions. The design of the presentation is therefore critical. Sometimes it is not enough for leaders just to present an idea, they are then obliged to negotiate in order to reach a decision. -/- . (shrink)

This chapter includes a discussion of leadership decisions and stress. Many leaders are daily exposed to stress when they must make decisions, and there are often social reasons for this. Social standards suggest that a leader must be proactive and make decisions and not flee the situation. Conflict often creates stress in decision-making situations. It is important for leaders to understand that it is not stress in itself that leads to bad decisions, rather, bad decisions may be the result of (...) time pressure in the sense that leaders have not been able to gather enough relevant information. Thus, it is worthwhile for leaders to be able to prioritize properly in order to cope with stressful situations. In some situations, a leader chooses to delegate the decisions to his/her team and then it is important to guard against «groupthink», a phenomenon where members of a team put consensus before anything else as a result of the peer pressure. A number of methods are presented that enable leaders to avoid this phenomenon. Often leaders are involved in decision-making situations where they are forced to navigate between objectives that are in strong conflict with each other. We are talking about «decision dilemmas». These are characterized by the existence of a conflict between the top leadership's desire to control the activities and their wish to give autonomy and independence to the various units. It is important for leaders to be able to strike a balance in different dilemma situations and understand how to best manage conflicts when they arise -/- . (shrink)

In this chapter it is pointed out that leaders who make decisions normally rely on both their intuition and their analytical thinking. Modern research shows that intuitive thinking has the potential to support the analytical, if used properly. Leaders must therefore be aware of the possibilities and limitations of intuition. Fresh thinking and innovation are key elements in leadership analysis, thus creative problem-solving is an important complement to traditional leadership thinking. Creative leaders work extensively with both intuition and logic. They (...) also often work with metaphors, analogies, images and imagination to create dynamism in the analysis of a problem. Many leaders come in daily contact with problems that are not necessarily self-generated. It is therefore important that they have the opportunity to take an outside perspective on the situation. They must be able to define the problems which are of strategic importance for the activity. Leaders should not allow themselves to be stressed too much by various everyday problems, but be aware that they usually cannot just ignore them. After delineating a problem a leader should think through what trials ought to be conducted to test a given hypothesis about reality. This can be done by showing how different problems are related to each other. When analyzing various problems it is useful to clarify what kinds of decisions theyrelate to. Some decisions must be made directly, while others canbe postponed. Some decisions are reversible in nature while others are irrevocable -/- . (shrink)

Research on preference reversals has demonstrated a disproportionate influence of outcome probability on choices between monetary gambles. The aim was to investigate the hypothesis that this is a prominence effect originally demonstrated for riskless choice. Another aim was to test the structure compatibility hypothesis as an explanation of the effect. The hypothesis implies that probability should be the prominent attribute when compared with value attributes both in a choice and a preference rating procedure. In Experiment 1, two groups of undergraduates (...) were presented with medical treatments described by two value attributes (effectiveness and pain-relief). All participants performed both a matching task and made preference ratings. In the latter task, outcome probabilities were added to the descriptions of the medical treatments for one of the groups. In line with the hypothesis, this reduced the prominence effect on the preference ratings observed for effectiveness. In Experiment 2, a matching task was used to demonstrate that probability was considered more important by a group of participating undergraduates than the value attributes. Furthermore, in both choices and preference ratings the expected prominence effect was found for probability. (shrink)

In computational cognitive science, a valuationist picture of human agent architecture has become widespread. At the heart of valuationism is a simple and sweeping claim: Every time an agent acts, they do so on the basis of value representations, which are, roughly, representations of the expected value of one’s response options. In this essay, I do three things. First, I give a systematic, philosophically rich account of the valuationist picture of agency. I also highlight the generality of the model in (...) explaining diverse forms of person-level agency. Second, I discuss connections between the valuationist model and two traditional models in philosophy, the belief/desire model and the decision-theoretic model. Valuationism is related to both, but critical differences remain. Third, I canvas the wide-ranging implications of valuationism for philosophical inquiry. Among other things, valuationism illuminates the elusive boundary between activity and passivity; it flips the standard philosophical understanding of decision around, with decision being a source of, rather than a product of, one’s agency; it reconceptualizes motivation as, in part, a representational phenomenon; it challenges a philosophical dogma that control over action is more extensive than control over belief; and it offers an intriguing “accuracy-based” approach to the normative criticism of agency. (shrink)