The Effect Of System1and System2on Decision Making

For a long time, the "rational man" hypothesis is used to explain and predict human behavior which considered to be the cornerstone of economics. Since the1950’s, some researchers put forward the limited rational theory which expand the research field of decision theory. In the1970’s, Daniel Kahneman due to describe the problem form different in real life, people are not clear when they making decisions.Psychologist Keith Stan Norwich and Richard West use the term system1and system2explain how things work in human’s brain make decisions. System1on behalf of the state of brain is completely autonomous control. The brain is run quickly and unconscious, which can simply summarized as intuition. The operation of the system2need to concentrate, and selective and focus on the subjective experience, can be summarized as thinking or analyzing. The concept of system1and2can be materialized in the form of the problem’s description and refinement. We can use this idea to analyzing the real motivate behind the behavior.We conduct an experiment examining dual-process reasoning in two tasks:a charitable donation task and the standard trust game using the strategy method. We frame the charitable donation task to reflect either a System1or System2decision-making process. The charitable donation task in a System2setting uses a written introduction of the chosen charity as well as a quiz to reflect that they have comprehended the activities of the charity. The charity donation task in the System1setting uses a video presentation of the activities of the charity in settings of poverty as well as narration from affected parties. The trust game is conducted as a System2decision-making process. Treatments are used to separate the carryover effect and the effect of System1on System2generosity. We show that there are strong carryover effects, and that framing the donation task using System1elicits greater charity and that this generosity carries over when players make a trust decision. Framing the donation task in System2does not affect the trust decision.