Decision Making 6: Wrapping Up. I. Wrap up reason-based choice II. Happiness III. Review/Q&A. Reason-Based Choice: Review. The search for reasons to justify a decision can lead to systematic biases: 1) Preference Reversals 2) Choosing vs. Rejecting 3) Seeking Options
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I. Wrap up reason-based choice
The search for reasons to justify a decision can lead to systematic biases:
1) Preference Reversals
2) Choosing vs. Rejecting
3) Seeking Options
4) Adding Options
5) Disjunction Effect
6) Non-valued Features
The good news: 93% of people rate themselves “somewhat happy” to “extremely happy”
Researchers conceive of “happiness” as subjective well-being= cognitive (satisfaction) + affective (joy/happiness)
Satisfaction is difficult to predict from objective variables such as income.
* Detroit housewives
* Between countries
This may be due to our tendency to rapidly adapt to changes
* lottery winners & accident victims (Brickman)
Sources of joy(Argyl, 1988/1992)
* social contacts/close relationships
* sexual activity
* physical activity/exercise
* nature, reading, music
* food & drink
Judgments of happiness and satisfaction are, to a large extent, constructed on the spot.
1) our transitory mood affects these judgments
* present circumstances
2) very recent events/judgments influence judgments
* How often do you normally go out on a date? (Schwartz et al)
* social comparison (Fox & Kahneman)
* ruminating about other times & places
Prediction : most decisions require us to anticipate future utility (e.g., of consuming ice cream, taking particular job).
1) we are not very good at this task!
2) we tend to overweight changes
* are Californians happier? (Kahneman & Schkade)
Retrospection : we consume memories, and use this information to help guide prediction for future decisions.
1) Peak + change at end dominate
* ice baths, film clips, colonoscopies
2) Regrets color our experience
* silver medalists; short term vs. long-term
1) Consider your personal sources of joy, arrange your life to include more of them.
2) Cultivate a happy attitude:
a) Don’t make self-defeating comparisons (Lyubomirsky)
b) Don’t wallow in what you have lost (Keltner)
3) Learn to anticipate adaptation (Schkade)
4) Become a skilled consumer (Scitovsky)
* invest in learning (e.g., wine, jazz)
* more pleasures, fewer comforts
5) Just do it! (or else you will regret your inaction in the long run)
Alfred North Whitehead on teaching:
“Whatever be the detail with which you cram your students, the chance of their meeting in after-life exactly that detail is almost infinitesimal; and if they do meet it, they will probably have forgotten what you taught them about it….”
“The really useful training yields a comprehension of a few general principles with a thorough grounding in the way they apply to a variety of concrete details….”
“In subsequent practice the students will have forgotten your particular details; but they will remember by an unconscious common sense how to apply principles to immediate circumstances.”