value-based decision model - decision made based on the option that will bring the greatest value to the decider, or that the decider PERCEIVES will bring the greatest value (allows for incorrect judgments by perceiver)

reasons-based decision model - decision made based on the strength of various reasons for or against an option.

Why value-based decision models aren=t what we are probably using:

1) we don=t KNOW all the things that need to go in our value equations

2) even when we do, we don=t compute equation

 

Slovic (1975) -- When chooser is allowed to make options described by 2 different dimensions that he or she has equated in value, that same chooser is likely to have a preference: for the option that is highest on the most important dimension.

When faced with two very close options, we:

- don=t decide

- ask for more options


Deriving meaning from closeness of options


Relative, not absolute judgments

extremeness aversion -- Tendency to pick option which is intermediate on two dimensions.

asymmetric dominance:

Car A gets better mileage but has worse repair record.

Car B has worse mileage but good repair record.

Car C has slightly worse mileage and slightly worse repair record than Car A

Likely to pick A, even though you wouldn=t prefer A to B without C,

(and wouldn=t necessarily prefer B to C without A)


impoverished - no good reason for OR against

enriched -- good reasons for AND against