LUBS3950 – Current Issues in Decision Making

University of Leeds | Leeds University Business School

🎯 Course Overview

This module explores contemporary theories and research in judgment and decision-making, examining how cognitive processes, individual differences, and environmental factors influence choices in personal and organizational contexts. Students will critically analyze decision-making biases, heuristics, and ecological rationality while developing practical strategies to improve decision quality. Through case studies and empirical research, students will learn to evaluate decision-making competence across various domains including healthcare, finance, and management.

📅 Key Topics & Seminar Focus

• Topic 1: Foundations of Decision Making
  • Normative vs. descriptive approaches to decision making
  • Dual-process theories (System 1 vs. System 2)
  • Bounded rationality and ecological rationality
• Topic 2: Numeracy and Decision Quality
  • Impact of numeracy skills on financial and medical decisions
  • Cognitive reflection and decision-making competence
  • Case study: Retirement planning and investment choices
• Topic 3: Default Options and Choice Architecture
  • Mechanisms of default effects (endorsement, endowment, effort)
  • Applications in organ donation and retirement savings
  • Ethical considerations in nudging
• Topic 4: Information Avoidance
  • Strategic ignorance in negotiations
  • Motivations for information avoidance (emotional regulation, action avoidance)
  • Case study: Gender bias in hiring decisions
• Topic 5: Expertise and Intuition
  • When experts outperform algorithms
  • Deliberate practice and the development of expertise
  • Case study: Clinical vs. actuarial judgment
• Topic 6: Affective Forecasting
  • Impact bias and durability bias
  • Psychological immune system
  • Applications in consumer decision making
• Topic 7: Ecological Rationality
  • Fast-and-frugal heuristics
  • Recognition heuristic and take-the-best strategy
  • Applications in managerial decision making

📚 Key Readings

• Core Textbook: Kahneman, D. (2011). Thinking, Fast and Slow – Chapters 1-12
• Theoretical Foundations:
  • Simon (1956) – Bounded Rationality
  • Tversky & Kahneman (1974) – Judgment Under Uncertainty
  • Gigerenzer & Todd (1999) – Fast and Frugal Heuristics
• Contemporary Research:
  • Peters et al. (2006) – Numeracy and Decision Making
  • Gilbert et al. (1998) – Immune Neglect in Affective Forecasting
  • Artinger et al. (2015) – Heuristics in Managerial Decision Making

📝 Assessment

The module is assessed through two open-book exams (one per semester):

• Exam Format:
  1. Answer 2 out of 5 questions
  2. 1,000 words per question
  3. 48-hour submission window
• Evaluation Criteria:
  • Depth of theoretical understanding
  • Critical analysis of research evidence
  • Application to real-world decision contexts
  • Clarity and organization of arguments

🔍 Exam Preparation Guide

Key Frameworks to Master

• Dual Process Theory: System 1 (intuitive) vs. System 2 (analytic) thinking
• Heuristics and Biases: Availability, representativeness, anchoring
• Ecological Rationality: How heuristics exploit environmental structures
• Affective Forecasting: Why predictions about future emotions often fail

Answer Structure Tips

1. Introduction: Define key terms, outline argument structure
2. Theoretical Foundation: Present relevant theories and research
3. Critical Analysis: Compare/contrast perspectives, evaluate evidence
4. Applications: Practical examples from business/management
5. Conclusion: Summarize key points, answer question directly

📝 Mock Exam Questions