So, why would people make contrary choices, even if the gain remains the same and the only difference being the description? On the other hand, if you’d like to take the opportunity to win the $2,000, then you should choose both options giving you a 50% chance to achieve it. If you are happy with $1,500, then you should pick both options offering the same resulting amount with a 100% chance.

However when you think carefully, you'll see that the two questions are virtually identical. When answering the second question, however, most people chose the prospect with a 50% chance of losing $1,000. The result showed that for the first question, the majority picked the option with a 100% chance of winning $500.

These were the two questions that the two psychologists asked their research participants. Question two: You've been given $2,000, and you need to choose from another two options. Question one: Imagine you’ve been given $1,000, and you need to choose from two options. Today we’ll unlock the book The Undoing Project: A Friendship That Changed Our Minds.īefore we proceed, first think of the following two questions. Next Section Glossary Previous Section The Undoing Project Summary How To Cite in MLA Format Anonymous 'The Undoing Project Characters'. Will review the submission and either publish your submission or provide feedback. You can help us out by revising, improving and updatingĪfter you claim a section you’ll have 24 hours to send in a draft. He did this work through the lens of Cognitive Behavioral Psychology, which means that he studied the animal habits of humans, instead of analyzing their thoughts or ideas. His work helped to provide an avenue for marketers to advertise more effectively to humans, using scientific research to determine what it takes to manipulate a person to buying something. This Israeli-American psychologist was the recipient of a Nobel prize for his work in the field of the psychology of decision-making. His contribution was the study of risk assessment, how humans identity risk and reward, and behavioral probability, which helped to transform marketing efforts into something more scientific and analytic in the general public. This important psychologist and cognitive scientist was a helper to Daniel Kahneman in his development of a marketing theory that eventually earned Kahneman a Nobel prize. Written by people who wish to remain anonymous We are thankful for their contributions and encourage you to make your own. These notes were contributed by members of the GradeSaver community.

The undoing project summary