Skip to main content
SpringerLink
Log in

Psychological Determinants of Decision Making

  • Conference paper
  • First Online:
Neuroeconomic and Behavioral Aspects of Decision Making

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

Decision making has been a subject of study in many scientific fields. It is psychological studies, however, that have brought significant contribution to understanding mechanisms that underlie making choices by individuals. The purpose of this chapter is first of all the description of mental processes, also referred to as decision-making activities, that are involved in various stages of decision-making. The second purpose is to present two systems of information processing which are engaged in varying degrees in the process. Moreover, the chapter describes the strategy of decision making, i.e. the heuristics allowing for prompt and economical actions. It also defines the role of free will and self-control in the decision-making processes. What is of key importance is the explanation from the psychological perspective of the process of decision making under uncertainty as well as the discussion of potential negative consequences of complex decisions made by individuals, groups and communities.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Andrade EB, Ariely D (2009) The enduring impact of transient emotions on decision making. Organ Behav Hum Decis Process 109:1–8

    Article  Google Scholar 

  • Avčin BA, Kučina AU, Sarotar BN et al (2011) The present global financial and economic crisis poses an additional risk factor for mental health problems on the employees. Psychiatr Danub 23:142–148

    Google Scholar 

  • Bandura A, Jourden FJ (1991) Self-regulatory mechanisms governing the impact of social comparison on complex decision making. J Pers Soc Psychol 60:941–951

    Article  Google Scholar 

  • Bargh JA (1999) The cognitive monster. In: Chaiken S, Trope Y (eds) Dual process theories in social psychology. Guilford Press, New York, pp 361–382

    Google Scholar 

  • Baumeister RF, Bratslavsky E, Muraven M et al (1998) Ego depletion: is the active self a limited resource? J Pers Soc Psychol 74:1252–1265

    Article  Google Scholar 

  • Baumeister RF, Gailliot M, DeWall CN et al (2006) Self-regulation and personality: how interventions increase regulatory success, and how depletion moderates the effects of traits on behavior. J Pers 74:1773–1802

    Article  Google Scholar 

  • Bentley R, Baker E, Mason K et al (2011) Association between housing affordability and mental health: a longitudinal analysis of a nationally representative household survey in Australia. Am J Epidemiol 174:753–760

    Article  Google Scholar 

  • Bernstein PL (1997) Przeciw bogom. Niezwykłe dzieje ryzyka. WIG-Press, Warszawa

    Google Scholar 

  • Bernstein PL (1998) Intelektualna historia wall street. WIG-Press, Warszawa

    Google Scholar 

  • Brandstätter E, Gigerenzer G, Hertwig R (2006) The priority heuristic: making choices without trade-offs. Psychol Rev 113:409–432

    Article  Google Scholar 

  • Bridges S, Disney R (2010) Debt and depression. J Health Econ 29:388–403

    Article  Google Scholar 

  • Bromiley P, Curley SP (1992) Individual differences in risk taking. In: Yates JF (ed) Risk-taking behavior. Wiley, New York, pp 87–132

    Google Scholar 

  • Brown S, Taylor K, Price SW (2005) Debt and distress: evaluating the psychological cost of credit. J Econ Psychol 26:642–663

    Article  Google Scholar 

  • Camerer CF (2004) Prospect theory in the wild: evidence from the field. In: Kahneman D, Tversky A (eds) Choices, values, and frames. Cambridge University Press, Cambridge, pp 288–300

    Google Scholar 

  • Cooper C, Bebbington PE, Meltzer H et al (2008) Depression and common mental disorders in lone parents: results of the 2000 National Psychiatric Morbidity Survey. Psychol Med 38:335–342

    Article  Google Scholar 

  • Davies SP (2004) Planning and problem solving in well-defined domains. In: Morris R, Ward G (eds) The cognitive psychology of planning. Psychology Press, Hove, pp 35–51

    Google Scholar 

  • Davis JA, Savage G, Stewart RT et al (2003) Organizational downsizing: a review of literature for lanning and research/practitioner application. J Healthc Manag 48:181–199

    Google Scholar 

  • Del Missier F, Mäntylä T, Bruine de Bruin W (2010) Executive functions in decision making: an individual differences approach. Think Reason 16:69–97

    Article  Google Scholar 

  • Djeriouat H, Trémolière B (2014) The dark triad of personality and utilitarian moral judgment: the mediating role of honesty/humility and harm/care. Personal Individ Differ 67:11–16

    Article  Google Scholar 

  • Drentea P (2000) Age, debt and anxiety. J Health Soc Behav 41:437–450

    Article  Google Scholar 

  • Drentea P, Lavrakas PJ (2000) Over the limit: the association among health, race and debt. Soc Sci Med 50:517–529

    Article  Google Scholar 

  • Drentea P, Reynolds JR (2012) Neither a borrower nor a lender be: the relative importance of debt and SES for mental health among older adults. J Aging Health 24:673–695

    Article  Google Scholar 

  • Epstein S (1994) Integration of the cognitive and the psychodynamic unconscious. Am Psychol 49:709–724

    Article  Google Scholar 

  • Epstein S (2003) Cognitive-experiential self-theory of personality. In: Millon T, Lerner M (eds) Comprehensive handbook of psychology. Wiley, Hoboken, pp 156–184

    Google Scholar 

  • Evans JSB (1984) Heuristic and analytic processes in reasoning. Br J Psychol 75:451–468

    Article  Google Scholar 

  • Evans JSB (2006) The heuristic-analytic theory of reasoning: extension and evaluation. Psychon Bull Rev 13:378–395

    Article  Google Scholar 

  • Falkowski A, Tyszka T (2001) Psychologia zachowań konsumenckich. Gdańskie Wydawnictwo Psychologiczne, Gdańsk

    Google Scholar 

  • Falkowski A, Maruszewski T, Nęcka E (2008) Procesy poznawcze. In: Strelau J, Doliński D (eds) Psychologia. Podręcznik akademicki. Gdańskie Wydawnictwo Psychologiczne, Gdańsk, pp 339–510

    Google Scholar 

  • Gigerenzer G, Todd PM, ABC Research Group et al (1999) Simple heuristics that make us smart. Oxford University Press, Oxford

    Google Scholar 

  • Hastie R, Dawes RM (2010) Rational choice in an uncertain world: the psychology of judgment and decision making. Sage, Los Angeles

    Google Scholar 

  • Hinson JM, Jameson TL, Whitney P (2003) Impulsive decision making and working memory. J Exp Psychol Learn Mem Cogn 29:298–306

    Article  Google Scholar 

  • James W (1890/1950) The principles of psychology. Dover Publications, New York

    Google Scholar 

  • Jenkins R, Fitch C, Hurlston M et al (2009) Recession, debt and mental health: challenges and solutions. Ment Health Fam Med 6:85–90

    Google Scholar 

  • Juslin P, Montgomery H (2007) Judgment and decision making: neo-Brunswikian and process-tracing approaches. Psychology Press, Mahwah

    Google Scholar 

  • Kahneman D (2003) A perspective on judgment and choice: mapping bounded rationality. Am Psychol 58:697–720

    Article  Google Scholar 

  • Kahneman D, Frederick S (2002) Representativeness revisited: attribute substitution in intuitive judgment. In: Gilovich T, Griffin D, Kahneman E (eds) Heuristics and biases: the psychology of intuitive judgment. Cambridge University Press, New York, pp 49–81

    Chapter  Google Scholar 

  • Kahneman D, Frederick S (2005) A model of heuristic judgment. In: Holyoak KJ, Morrison RG (eds) The Cambridge handbook of thinking and reasoning. Cambridge University Press, New York, pp 267–293

    Google Scholar 

  • Kahneman D, Tversky A (1979) Prospect theory: an analysis of decision under risk. J Econ Soc 47:263–291

    Google Scholar 

  • Lerner JS, Li Y, Valdesolo P et al (2015) Emotion and decision making. Annu Rev Psychol 66:799–823

    Article  Google Scholar 

  • Liang YJ (2016) Reading to make a decision or to reduce cognitive dissonance? The effect of selecting and reading online reviews from a post-decision context. Comput Hum Behav 64:463–471

    Article  Google Scholar 

  • Lopes LL (1987) Between hope and fear: the psychology of risk. In: Berkowitz L (ed) Advances in experimental social psychology. Academic, San Diego, pp 255–295

    Google Scholar 

  • Markowitz H (1952) Portfolio selection. J Financ 7:77–91

    Google Scholar 

  • Martin-Carrasco M, Evans-Lacko S, Dom G et al (2016) EPA guidance on mental health and economic crises in Europe. Eur Arch Psychiatry Clin Neurosci 266:89–124

    Article  Google Scholar 

  • Mauramo E, Lallukka T, Laaksonen M et al (2012) Past and present socioeconomic circumstances and psychotropic medication: a register-linkage study. J Epidemiol Community Health 66:1143–1151

    Article  Google Scholar 

  • Meltzer H, Bebbington P, Brugha T et al (2013) The relationship between personal debt and specific common mental disorders. Eur J Pub Health 23:108–113

    Article  Google Scholar 

  • Mlodinow L (2009) Matematyka niepewności. Jak przypadki wpływają na nasz los. Prószyński i S-ka, Warszawa

    Google Scholar 

  • Modrek S, Cullen MR (2013) Job insecurity during recessions: effects on survivors’ work stress. BMC Public Health 13:929

    Article  Google Scholar 

  • Moller AC, Deci EL, Ryan RM (2006) Choice and ego-depletion: the moderating role of autonomy. Personal Soc Psychol Bull 32:1024–1036

    Article  Google Scholar 

  • Morris R, Ward G (2004) The cognitive psychology of planning. Psychology Press, Hove

    Google Scholar 

  • Nęcka E, Orzechowski J (2005) Higher-order cognition and intelligence. In: Sternberg RJ, Pretz JE (eds) Cognition and intelligence: identifying the mechanisms of the mind. Cambridge University Press, New York, pp 122–141

    Google Scholar 

  • Neumann J, Morgenstern O (2007) Theory of games and economic behawior. Princeton University Press, Princeton

    Google Scholar 

  • Newell BR, Shanks DR (2014) Unconscious influences on decision making: a critical review. Behav Brain Sci 37:1–19

    Article  Google Scholar 

  • Ordonez L, Benson L (1997) Decisions under time pressure: how time constraint affects risky decision making. Organ Behav Hum Decis Process 71:121–140

    Article  Google Scholar 

  • Payne JW, Bettman JR, Johnson EJ (1993) The adaptive decision maker. Cambridge University Press, New York

    Book  Google Scholar 

  • Quinlan M, Bohle P (2009) Overstretched and unreciprocated commitment: reviewing research on the occupational health and safety effects of downsizing and job insecurity. Int J Health Serv 39:1–44

    Article  Google Scholar 

  • Randel JM, Pugh HL, Reed SK (1996) Differences in expert and novice situation awareness in naturalistic decision making. Int J Hum Comput Stud 45:579–597

    Article  Google Scholar 

  • Ranyard R, Crozier WR, Svenson O (1997) Decision making: cognitive models and explanations. Psychology Press, London

    Book  Google Scholar 

  • Reitman WR (1965) Cognition and thought: an information processing approach. Wiley, Oxford

    Google Scholar 

  • Rohrbaugh CC, Shanteau J (1999) Context, process, and experience: research on applied judgment and decision making. In: Durso FT (ed) Handbook of applied cognition. Wiley, Chichester, pp 115–139

    Google Scholar 

  • Schwartz A, Goldberg J, Hazen G (2008) Prospect theory, reference points, and health decisions. Judgm Decis Mak 3:174–180

    Google Scholar 

  • Schwarz N (2000) Emotion, cognition, and decision making. Cognit Emot 14:433–440

    Article  Google Scholar 

  • Shanteau J (1992) Competence in experts: the role of task characteristics. Organ Behav Hum Decis Process 53:252–266

    Article  Google Scholar 

  • Shanteau J (2012) Decision making by experts. In: Shanteau J, Mellers BA, Schum DA (eds) Decision science and technology. Reflections and contributions of ward edwards. Springer, New York, pp 105–132

    Google Scholar 

  • Simon HA (1956) Rational choice and the structure of the environment. Psychol Rev 63:129–138

    Article  Google Scholar 

  • Simon HA (2013) Administrative behavior. The Free Press, New York

    Google Scholar 

  • Sloane P, MacHale D (1997) Perplexing lateral thinking puzzles. Sterling, New York

    Google Scholar 

  • Sloman SA (1996) The empirical case for two systems of reasoning. Psychol Bull 119:3–22

    Article  Google Scholar 

  • Snorradóttir Á, Vilhjálmsson R, Rafnsdóttir GL et al (2013) Financial crisis and collapsed banks: psychological distress and work related factors among surviving employees. A nation-wide study. Am J Ind Med 56:1095–1106

    Article  Google Scholar 

  • Sokołowska J (2005) Psychologia decyzji ryzykownych. Ocena prawdopodobieństwa i modele wyboru w sytuacji ryzykownej. Wydawnictwo SWPS Academica, Warszawa

    Google Scholar 

  • Stanovich KE, West RF (2000) Advancing the rationality debate. Behav Brain Sci 23:701–717

    Article  Google Scholar 

  • Stanovich KE, Toplak ME, West RF (2008) The development of rational thought: a taxonomy of heuristics and biases. Adv Child Dev Behav 36:251–285

    Article  Google Scholar 

  • Sunstein CR (2000) Behavioral law and economics. Cambridge University Press, New York

    Book  Google Scholar 

  • Svenson O (1992) Differentiation and consolidation theory of human decision making: a frame of reference for the study of pre-and post-decision processes. Acta Psychol 80:143–168

    Article  Google Scholar 

  • Svenson O (2003) Values, affect and processes in human decision making: a differentiation and consolidation theory perspective. In: Schneider SL, Shanteau J (eds) Emerging perspectives on judgment and decision research. Cambridge University Press, New York, pp 287–326

    Chapter  Google Scholar 

  • Taylor MP, Pevalin DJ, Todd J (2007) The psychological costs of unsustainable housing commitments. Psychol Med 37:1027–1036

    Article  Google Scholar 

  • Toplak ME, Sorge GB, Benoit A et al (2010) Decision-making and cognitive abilities: a review of associations between Iowa gambling task performance, executive functions, and intelligence. Clin Psychol Rev 30:562–581

    Article  Google Scholar 

  • Tranel D, Anderson SW, Benton A (1994) Development of the concept of “executive function” and its relationship to the frontal lobes. In: Boller F, Grafman J (eds) Handbook of neuropsychology. Elsevier, Amsterdam, pp 125–148

    Google Scholar 

  • Tversky A (1972) Elimination by aspects: a theory of choice. Psychol Rev 79:281–299

    Article  Google Scholar 

  • Wang J, Novemsky N, Dhar R et al (2010) Trade-offs and depletion in choice. J Mark Res 47:910–919

    Article  Google Scholar 

  • Wood R, Bandura A (1989) Impact of conceptions of ability on self-regulatory mechanisms and complex decision making. J Pers Soc Psychol 56:407–415

    Article  Google Scholar 

  • Zagorsky JL (2007) Do you have to be smart to be rich? The impact of IQ on wealth, income and financial distress. Intelligence 35:489–501

    Article  Google Scholar 

  • Zaleśkiewicz T (2011) Psychologia ekonomiczna. Wydawnictwo Naukowe PWN, Warszawa

    Google Scholar 

  • Zsambok CE, Klein G (2014) Naturalistic decision making. Psychology Press, New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Clinical Psychology and Psychoprophylaxis, Institute of Psychology, University of Szczecin, al. Jana Pawła II 22a, Szczecin, 70-453, Poland

    Ernest Tyburski

Authors
  1. Ernest Tyburski
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Ernest Tyburski .

Editor information

Editors and Affiliations

  1. Department of Computer Methods in Experimental Economics, Faculty of Economics and Management, University of Szczecin, Szczecin, Poland

    Kesra Nermend

  2. Institute of IT in Management, Faculty of Economics and Management, University of Szczecin, Szczecin, Poland

    Małgorzata Łatuszyńska

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this paper

Cite this paper

Tyburski, E. (2017). Psychological Determinants of Decision Making. In: Nermend, K., Łatuszyńska, M. (eds) Neuroeconomic and Behavioral Aspects of Decision Making. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-62938-4_2

Download citation

Publish with us

Policies and ethics

Search

Navigation