Tuesday, November 17, 2015

Decision making fatigue

Definition: Decision making fatigue theorizes that as people make decisions, the quality of their decisions deteriorates due to a specific form of psychological exhaustion. (Baumeister, R.)  Decision fatigue is associated with impaired self-regulation, decision avoidance and poor or irrational decision making.

Application: Studies have shown that decision-making fatigue plays a significant role in the choices that people make; for instance, judges have been shown to be significantly less lenient to defendants later in the day, and people who have had to make more decisions have been shown to have less ability to exercise self control.

Adaptation: Decision making fatigue provides a useful insight in understanding a social cost of poverty; people with fewer resources are forced to make more decisions, each of which carry greater weight, than people with more resources and safety nets. By understanding poverty through this framework, we can better understand the psychological impact and fatigue caused by lack of financial resources.


References: Baumeister, Roy F (2003), "The Psychology of Irrationality", in Brocas, Isabelle; Carrillo, Juan D, The Psychology of Economic Decisions: Rationality and well-being, pp. 1–15, ISBN 0-19-925108-8.

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