ABSTRACT
This chapter focuses on the overlapping areas of judgement and decision making. Judgement involves deciding on the likelihood of various events using incomplete information. Decision making involves selecting one option from several possibilities. In contrast, judgement research focuses mainly on those aspects of decision making concerned with estimating the probability of various events. According to support theory, an event's subjective probability increases as its description becomes more explicit and detailed. The prospect theory de-emphasises individual differences, emotional and social factors in decision making under risk, and loss aversion is sometimes not found. Emotional factors are important in decision making given that winning and losing both have emotional consequences. Making a decision can cause decision makers to misremember relevant factual information to increase the apparent support for that decision. According to Dijksterhuis's unconscious thought theory, unconscious thinking is more useful than conscious thinking with complex decision making.
