Emotion and Decision-Making

The Somatic Marker Hypothesis suggests that emotions, particularly bodily sensations, act as signals that help individuals make advantageous decisions.

The Affect Heuristic refers to the inclination to use emotions as a shortcut in decision-making, often leading to reliance on feelings rather than logical reasoning.

Prospect Theory proposes that individuals evaluate outcomes relative to a reference point, and emotions can influence the perceived value of these outcomes, thereby shaping decision-making.

Risk Seeking refers to the inclination to make riskier choices when presented with the possibility of gains, even if the potential losses are significant.

The Framing Effect proposes that the way information is presented (e.g., as gains or losses) can influence the perceived likelihood of outcomes and, consequently, decision-making.

Risk Aversion refers to the inclination to make more cautious choices when faced with the possibility of losses, even if the potential gains are substantial.

The Affect Heuristic suggests that emotions can influence decision-making by altering the perceived desirability of outcomes, leading individuals to choose options that elicit positive emotions.

Hot Cognition refers to the inclination to make decisions based on immediate emotional reactions, often without considering the long-term implications of those choices.

The Somatic Marker Hypothesis proposes that emotions, particularly bodily sensations, can influence decision-making by altering the perceived controllability of outcomes.

Cold Cognition refers to the inclination to make decisions based on logical reasoning and analysis, often without being influenced by immediate emotional reactions.

The Affect Heuristic suggests that emotions can influence decision-making by altering the perceived social desirability of outcomes, leading individuals to choose options that are socially acceptable.

Emotional Reasoning refers to the inclination to make decisions based on emotional reactions, often ignoring logical evidence and objective information.

Prospect Theory proposes that individuals evaluate outcomes relative to a reference point, and emotions can influence the perceived fairness of these outcomes, thereby shaping decision-making.

Cognitive Dissonance refers to the tendency to make decisions that reduce psychological discomfort caused by conflicting beliefs, attitudes, or behaviors.

Prospect Theory proposes that individuals evaluate outcomes relative to a reference point, and emotions can influence the perceived regret associated with these outcomes, thereby shaping decision-making.