Dual-system Decision Theory

Definition 1

Model of decision making that suggests two processes, System/Type 1 being faster, more “automatic” and less dependent on a cognitive heuristic; System/Type 2 process is slower, more complex and cognitive and used for more important/riskier choice options.

Source: Behavioral Science Lab, 2017

Definition 2

Dual-system models of the human mind contrast automatic, fast, and non-conscious (System 1) with controlled, slow, and conscious (System 2) thinking (see Strack & Deutsch, 2015, for an extensive review). Many heuristics and cognitive biases studied by behavioral economists are the result of intuitions, impressions, or automatic thoughts generated by System 1 (Kahneman, 2011). Factors that make System 1’s processes more dominant in decision making include cognitive busyness, distraction, time pressure, and positive mood, while System 2’s processes tend to be enhanced when the decision involves an important object, has heightened personal relevance, and when the decision maker is held accountable by others (Samson & Voyer, 2012; Samson & Voyer, 2014).

Source: Behavioral Economics