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Decision-making under Uncertainty: A Cognitive Approach

    Authors

    • Farshad Momeni 1
    • Amineh Shibaei 2

    1 Faculty of Economics, Allameh Tabataba’I University, Tehran, Iran

    2 Faculty of Economics, Management and Business, University of Tabriz, Tabriz, Iran

,

Document Type : Original Article

10.52547/jncog.2022.103432
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Abstract

Conventional economics believes that individuals are rational in their decisions based on five factors such as: considering all known options; using the maximum amount of available information; determining the precise weight -albeit subjective- of the costs and potential benefits of each option; accurate calculation -albeit subjective- of the various possible consequences; and the maximum amount of common sense considering all factors; are seeking to make sensible decisions. However, these factors have not always been fully established, perhaps even Individuals may be exposed to the uncertainty that jeopardizes decision-making. This is an applied and developmental research, with the type of library study and using the new findings of cognitive science, he explains how to make decisions under uncertainty. The findings of this study indicate the role of OPFC in decision-making, especially in the face of emotional factors and complex decisions that are all made by the PFC. In the face of risks of uncertainty, both of VPFC and VS sectors are active. The striatum is associated with loss aversion of people. Also, the role of the striatum in learning and habit formation can also be mentioned; so that information about uncertainty transmits through the striatum to the PFC section, and because the striatum transmits information to the brain via dopamine neurons, so by repeating behavior and receiving a reward, that behavior has become a habit, then belief Systems and mental models have been formed. Repeating uncertainty ultimately disrupts an individual's cognitive system, creates irrational beliefs, and increases people's uncertainty.

Keywords

  • Cognitive Science
  • Prefrontal Cortex
  • Uncertainty
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Journal of Neurodevelopmental Cognition
Volume 1, Issue 1 - Serial Number 1
June 2022
Pages 101-107
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  • PDF 1.3 M
History
  • Receive Date: 25 May 2022
  • Revise Date: 20 June 2022
  • Accept Date: 21 May 2022
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How to cite
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  • BibTeX
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Statistics
  • Article View: 578
  • PDF Download: 927

APA

Momeni, F. and Shibaei, A. (2022). Decision-making under Uncertainty: A Cognitive Approach. Journal of Neurodevelopmental Cognition, 1(1), 101-107. doi: 10.52547/jncog.2022.103432

MLA

Momeni, F. , and Shibaei, A. . "Decision-making under Uncertainty: A Cognitive Approach", Journal of Neurodevelopmental Cognition, 1, 1, 2022, 101-107. doi: 10.52547/jncog.2022.103432

HARVARD

Momeni, F., Shibaei, A. (2022). 'Decision-making under Uncertainty: A Cognitive Approach', Journal of Neurodevelopmental Cognition, 1(1), pp. 101-107. doi: 10.52547/jncog.2022.103432

CHICAGO

F. Momeni and A. Shibaei, "Decision-making under Uncertainty: A Cognitive Approach," Journal of Neurodevelopmental Cognition, 1 1 (2022): 101-107, doi: 10.52547/jncog.2022.103432

VANCOUVER

Momeni, F., Shibaei, A. Decision-making under Uncertainty: A Cognitive Approach. Journal of Neurodevelopmental Cognition, 2022; 1(1): 101-107. doi: 10.52547/jncog.2022.103432

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