The Neuroscience of Decision-Making
How your brain weighs risks and rewards – with interactive diagrams
1. Two Brain Systems: Fast vs Slow Thinking
Fig 1: Dual-process theory – how System 1 and System 2 interact
System 1 (Automatic)
- Fast, instinctive
- Emotion-driven
- Prone to biases
System 2 (Analytical)
- Slow, deliberate
- Logical thinking
- Energy-intensive
2. Dopamine: The Brain’s Reward Chemical
Fig 2: Dopamine pathway from VTA to reward centers
Key Findings:
- Dopamine spikes before receiving rewards (anticipation)
- Uncertain rewards trigger 2x more dopamine than predictable ones
- Addictive substances/behaviors flood this system
3. Cognitive Biases That Distort Decisions
| Bias | How It Tricks You | Real-World Example |
|---|---|---|
| Loss Aversion | Fear losses 2x more than equivalent gains | Keeping losing stocks too long |
| Confirmation Bias | Seek information that confirms existing beliefs | Only watching news that aligns with your views |
| Hyperbolic Discounting | Prefer smaller immediate rewards over larger delayed ones | Choosing $50 now vs $100 in 1 year |
4. Science-Backed Decision Strategies
🛑 The 10-10-10 Rule
Ask: How will I feel about this decision in 10 minutes, 10 months, and 10 years?
📝 Premortem Analysis
Before deciding, imagine the decision failed – what likely caused it?
⚖️ Opportunity Cost Checklist
List 3 alternatives you’re giving up by choosing this option.
🔑 Key Takeaways
- Your brain has competing systems for fast vs slow decisions
- Dopamine drives impulsive choices through reward anticipation
- Cognitive biases systematically distort your judgment
- Simple decision frameworks can override automatic impulses