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  • Essay / Decision Making - 973

    Humans make many decisions in their daily lives, from the moment an individual opens their eyes to the moment they close them. Researchers have studied the decision-making process for decades to understand how and why individuals make certain decisions. Several theories have been proposed to explain how individuals come to make a choice. Among several theories, Tversky and Kahneman (1981) propose that individuals make choices based on the wording of the question, namely the framing effect. In other words, individuals would choose different options depending on how the question is asked. Interestingly, some individuals like to make risk-averse choices (e.g., “choices that involve a gain,” p. 453), while others take risks (“choices that involve a gain,” p. 453), while others take risks (“choices that involve a gain "). losses »p. 453; Tversky and Kahnman, 1981). One reason why participants differed in their choices under the framing effect could be due to what was framed, what is affected (e.g., losing money or losing human lives), and to the way in which the framing effect is measured (Levin, Schneider and Gaeth, 1998). Another possibility could be the emotions an individual experiences when making decisions. Emotions and decision making Damasio, Tranel, and Damasio (1991) coined the somatic marker hypothesis, according to which the emotional process can guide decision making. decision. It has been noted that when individuals have damage to the prefrontal areas of the brain, they exhibit decision-making deficits (Damasio, Everitt, & Bishop, 1996). With this reasoning, De Martino, Kumaran, Seymour, and Dolan (2006) investigated how emotions were related to decision making and whether the framing effect would still be present. In this study, it was found that participants who performed a financial decision-making task exhibited...... middle of paper ......o and were rejected would have decision-making problems. Additionally, when participants played the ultimatum game and emotions like sadness were induced by showing video clips, participants were more likely to have lower acceptance rates of unfair offers (Harle' & Sanfey, 2007), which suggests that even induced emotions play an important role in decision-making. Furthermore, the rejection of unfair offers was not only attributed to the emotion of sadness (Harle' & Sanfey, 2007) but also to the emotion of anger (Pillutla & Murnighan, 1996). For example, the wounded pride and spite model proposed that when individuals perceived something as unfair, they would react with angry feelings and act maliciously (Pillutla & Murnighan, 1996). So, when participants play the ultimatum game and perceive unfair choices, they may become angry and not be able to make good decisions..