ABSTRACT
In various studies, researchers have looked at the impact of disruptions to our automatic information processing and intuitive reasoning. Psychology research suggests that we have two systems of reasoning; they are System 1 and System 2. These two systems support fundamentally different ways of how they process information, make sense of the world around us and ultimately how we make decisions. This chapter describes some of the decision-making biases: anchoring bias, framing bias, confirmation bias and hindsight bias. The anchoring bias had the longest history of the decision-making biases under uncertainty: the first studies were reported in the 1930s. The confirmation bias states that we tend to seek information that is consistent with our current hypothesis and are unlikely to search for information that is inconsistent with this hypothesis. The framing bias can be observed in many different decision examples. Framing the outcome of a gamble in terms of gains or losses can lead to different decisions.
