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GATE 2024 XH5 (Psychology) – Question 40

Cognition · Problem Solving and Decision-making: Methods, strategies, obstacles, metacognition, choosing among alternatives · 1 mark · Multiple choice

Which model of decision making relies on simplifying strategies or rules of thumb based on past experiences, fairness, past events and aversion to loss?

  1. Bounded rationality model
  2. Judgment heuristics and biases model
  3. Social model
  4. Economic rationality model

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Show answer and explanation

Correct answer: (B) Judgment heuristics and biases model

Explanation

The heuristics and biases model (Tversky and Kahneman) explains decisions by simplifying rules of thumb and loss aversion.