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