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The Psychology of Judgment and Decision Making
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The Psychology of Judgment and Decision Making

Scott Plous

4.3994 learners

Written by Scott Plous, *The Psychology of Judgment and Decision Making* offers a comprehensive exploration of the cognitive biases, psychological mechanisms, and social influences that drive human decision-making. Drawing on decades of landmark experiments and real-world case studies, the book breaks down why people often make irrational choices—from the hostility media effect and cognitive dissonance to anchoring bias and overconfidence. It examines core theories like prospect theory and expected utility theory, contrasts intuitive judgment shortcuts with rational decision models, and explores how social dynamics, groupthink, and self-serving biases shape individual and collective choices. Additionally, it delves into the evolutionary roots of these biases and their practical applications across fields like public policy, business, and healthcare, equipping readers with insights to recognize and mitigate common decision pitfalls.

cognitive dissonanceConfirmation BiasGroupthinkHindsight BiasProspect Theory
Insight

Overconfidence Bias

Most people think they’re better at avoiding risks than they actually are. This overconfidence leads to bad decisions—like skipping insurance or investing recklessly.

Cognitive BiasRisk Mistakes
You Are What You Risk · Chapter 6
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