How does the cognitive approach explain decision-making?

The cognitive approach explains decision-making as a process of information processing and problem-solving.

According to the cognitive approach, decision-making involves a series of cognitive processes, including perception, attention, memory, reasoning, and judgement. These processes are influenced by various factors, such as emotions, beliefs, values, and social norms. The cognitive approach also emphasises the importance of feedback and learning in decision-making, as individuals use feedback to adjust their decisions and improve their outcomes.

One key concept in the cognitive approach to decision-making is bounded rationality, which suggests that individuals are limited in their ability to process information and make optimal decisions. Instead, individuals use heuristics and shortcuts to simplify complex decisions and reduce cognitive effort. However, these heuristics can also lead to biases and errors in judgement, such as confirmation bias, availability bias, and anchoring bias.

Another important concept in the cognitive approach is decision-making under uncertainty, which refers to situations where individuals have incomplete or ambiguous information about the outcomes of their decisions. In these situations, individuals may use probabilistic reasoning, such as expected value theory or prospect theory, to estimate the likelihood and value of different outcomes.

Overall, the cognitive approach provides a comprehensive framework for understanding decision-making, highlighting the role of cognitive processes, feedback, learning, bounded rationality, heuristics, biases, and uncertainty.