Cognitive Biases

This paper will explore cognitive biases in decision making. Much of decision making is automatic and subject to errors and biases. Kahneman and Tversky are well-known for characterizing numerous cognitive biases and received the Nobel Prize for this work. They posit a dual-process theory of decision making that suggests we use two different modes or systems of processing that are characterized by automatic, error-prone thinking versus more effortful, accurate thinking. These are called System 1 and System 2 (or Type 1 and Type 2). Your paper will address the following:
1.Define, describe, and give examples of three cognitive biases and heuristics.
2.Describe Kahneman’s dual-process theory of decision making, Type 1 and Type 2 processing (i.e., System 1 and System 2), and how this model accounts for cognitive biases.
3.What can be done to ameliorate cognitive biases, and to shift from Type 1 to Type 2 processing? Examples of possibilities include training in mindfulness or in statistical reasoning.

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