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Describe the two steps of choosing.

1. Narrow choices down to a few.
2.Careful comparison of highlighted options.

Explain the four major patterns guiding people's choices (risk aversion, temporal discounting,
certainty effect, keeping options open) and reactance.

Risk aversion - People are more impacted by losses than gains.
Temporal discounting - What happens right now is more important than what happens in the future.
Certainty Effect - Some features of a decision have possibilities and odds, while others are more certain. Placing too much emphasis on the certain.
Keeping options open - waiting to make a decision to see different options.
Reactance - The desire to have freedom of choice and dislike to have options taken away

Explain how individuals set and pursue goals.

In setting goals people are thoughtful and seek out information whether good or bad. In pursuing goals, people are more focused on what goal they want to pursue and focus their efforts on it, losing interest in other goals.

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