Principles of (ir)rational decision-making

Additional: (3) Kahneman, D. (2011). Thinking Fast and Slow. Anchor Canada. * Some of you might be familiar with Daniel Kahneman’s work on biases and heuristics in human judgment and decision-making. This textbook is not required for the course. However, it provides additional reading material for specific topics you might consider for your in-class presentation or the final research paper. I will point out particular chapters in the course outline below as possi- ble background reading for specific presentations (note: those are only suggestions which might be more or less valuable depending on the particular topic that you decide to cover; use your own judgment to determine if the suggested chapters are a good fit). Obviously, you are free to read any other chapters, it’s an easy read, and I believe it’s a book that everyone should read at some point (but I might be biased...).

Listed material: Week 1 Introduction January 10 Key question(s): What exactly is a “good” or a “rational” decision?

Additional readings/material: - HD, Ch 1: Thinking and deciding - https://lt.org/publication/does-logically- incoherent-decision-making-really- have-negative-consequences - press coverage: Robert Thaler

Additional: Baron, J. (1994), Ch 20: Quantitative Judgment. p. 400-413. In: Thinking and

Additional: deciding (2nd edition). New York: Cam- bridge University Press. * one of the ‘classics’; provides more ex- amples and background information; you will do fine in class without reading this though

Additional: Possible article (pick one): - Iyengar SS, Wells RE, Schwartz B. Do- ing Better but Feeling Worse: Looking for the “Best” Job Undermines Satisfac- tion. Psychological Science. 2006;17(2):143-150.

Additional: Chan, E. (2022). Can social comparison motivate satisficers? the role of input versus output in upward social compari- son. Journal of Consumer Psychology, 32(4), 664-671.

Additional: Background reading: - Saltsman, TL, Seery, MD, Ward, DE, Lamarche, VM, Kondrak, CL. Is satis- ficing really satisfying? Satisficers ex- hibit greater threat than maximizers during choice overload. Psychophysiol- ogy. 2021; 58:e13705.

Additional: Option 2: Voting and choice set size

Additional: Possible article: - Cunow, S., Desposato, S., Janusz, A., & Sells, C. (2021). Less is more: The para- dox of choice in voting behavior. Elec- toral Studies, 69, 102230.

Additional: Option 3: Unconscious thought advantage in complex choice

Additional: Possible article(s): - Dijksterhuis, A., Bos, M.W., Nordgren, L.F. & van Baaren, R.B. (2006). On making the right choice: the delibera- tion-without-attention effect. Science, 311, 1005–1007.

Additional: Nieuwenstein, M. R., Wierenga, T., Morey, R. D., Wicherts, J. M., Blom, T. N., Wagenmakers, E.-J., & van Rijn, H. (2015). On making the right choice: A meta-analysis and large-scale replication attempt of the unconscious thought ad- vantage. Judgment and Decision Mak- ing, 10(1), 1-17. * meta-analysis on the general topic

Additional: Adolphs, R., & Andler, D. (2018). In- vestigating emotions as functional states distinct from feelings. Emotion Review, 10(3), 191-201. * if you have no prior background in the- ories of emotions, please have a look at this introduction/overview paper

Additional: Lowenstein, G., Weber, E.U., Hsee, C.K., Welch, N. (2001). Risk as feelings. Psychol. Bull., 127, pp. 267-286. * a classic review delineating the distinc- tion between anticipated and immediate emotions. * useful background reading if you if you focus on risk perception; there is a ton of research on that issue

Additional: Suggested background reading: - Finucane, M. L., Alhakami, A., Slovic, P., & Johnson, S. M. (2000). The affect heuristic in judgments of risks and bene- fits. Journal of behavioral decision mak- ing, 13(1), 1-17. * comprehensive theory delineating how fear and happiness influence decision making by prompting people to reinter- pret the risks and outcomes they con- front. * useful if you focus on risk perception

Listed material: Week 1 Introduction January 11 Key question(s): What exactly is a “good” or a “rational” decision?

Additional readings/material: - HD, Ch 1: Thinking and deciding - https://lt.org/publication/does-logically- incoherent-decision-making-really- have-negative-consequences - press coverage: Robert Thaler

Additional: Adolphs, R., & Andler, D. (2018). Investigating emotions as functional states distinct from feelings. Emotion Review, 10(3), 191-201. * if you have no prior background in theories of emotions, please have a look at this introduction/overview paper

Additional: Suggested background reading: - Lowenstein, G., Weber, E.U., Hsee, C.K., Welch, N. (2001). Risk as feelings. Psychol. Bull., 127, pp. 267-286. * a classic review delineating the distinction between anticipated and immediate emotions. * useful background reading if you if you focus on risk perception; there is a ton of research on that issue

Additional: Suggested background reading: - Finucane, M. L., Alhakami, A., Slovic, P., & Johnson, S. M. (2000). The affect heuristic in judgments of risks and benefits. Journal of behavioral decision making, 13(1), 1-17. * comprehensive theory delineating how fear and happiness influence decision making by prompting people to reinterpret the risks and outcomes they confront. * useful if you focus on risk perception

Additional: (3) Kahneman, D. (2011). Thinking Fast and Slow. Anchor Canada. * Some of you might be familiar with Daniel Kahneman’s work on biases and heuristics in human judgment and decision-making. This textbook is not required for the course. However, it provides additional reading material for specific topics that you might consider for your in-class presentation or the final research paper. I will point out specific chapters in the course outline below as possible background reading for specific presentations (note: those are only suggestions which might be more or less useful depending on the specific topic that you decide to cover; use your own judgment to decide if the suggested chapters are a good fit). Obviously, you are free to read any other chapters, it’s an easy read and I believe it’s a book that everyone should read at some point (but I might be biased...).

Listed material: Week 1 Introduction Sept. 10 Key question(s): What exactly is a “good” or a “rational” decision?

Additional readings/material: - HD, Ch 1: Thinking and deciding - https://lt.org/publication/does- logically-incoherent-decision-making- really-have-negative-consequences - press coverage: Robert Thaler

Additional: TS, Ch 8: Credit Markets

Additional: Baron, J. (1994), Ch 20: Quantitative Judgment. p. 400-413. In: Thinking and deciding (2nd edition). New York: Cambridge University Press. * one of the ‘classics’; provides more examples and background information; you will do fine in class without reading this though

Additional: Suggested article: - Caplin, A., Dean, M., & Martin, D. (2011). Search and satisficing. American Economic Review, 101(7), 2899-2922.

Additional: Suggested article(s): - Dijksterhuis, A., Bos, M.W., Nordgren, L.F. & van Baaren, R.B. (2006). On making the right choice: the deliberation-without-attention effect. Science, 311, 1005–1007. * super short science article (2 pages)

Additional: Nieuwenstein, M. R., Wierenga, T., Morey, R. D., Wicherts, J. M., Blom, T. N., Wagenmakers, E.-J., & van Rijn, H. (2015). On making the right choice: A meta-analysis and large-scale replication attempt of the unconscious thought advantage. Judgment and Decision Making, 10(1), 1-17. * meta-analysis on the general topic Deadline

Additional: Reaction paper #2 (@readings in week 3) due on Sunday, Sept 22, @midnight

Additional: Adolphs, R., & Andler, D. (2018). Investigating emotions as functional states distinct from feelings. Emotion Review, 10(3), 191-201. * if you have no prior background in theories of emotions, please have a look at this introduction/overview paper

Additional: Suggested background reading: - Lowenstein, G., Weber, E.U., Hsee, C.K., Welch, N. (2001). Risk as feelings. Psychol. Bull., 127, pp. 267-286. * a classic review delineating the distinction between anticipated and immediate emotions. * useful background reading if you if you focus on risk perception; there is a ton of research on that issue

Additional: Suggested background reading: - Finucane, M. L., Alhakami, A., Slovic, P., & Johnson, S. M. (2000). The affect heuristic in judgments of risks and benefits. Journal of behavioral decision making, 13(1), 1-17. * comprehensive theory delineating how fear and happiness influence decision making by prompting people to reinterpret the risks and outcomes they confront. * useful if you focus on risk perception Deadline

Additional: George, J. M., & Dane, E. (2016). Affect, emotion, and decision making.

Additional: Suggested background reading: - Kahneman, Ch. 32 (p. 346-352)