Abstract:

Fuzzy-trace theory is an important theory in the field of behavioral decision making. It suggests there are two methods named verbatim processing and gist processing when people are processing information; people tend to use gist processing in decision making; there are individual differences between these two processing methods. According to the fuzzy-trace theory, the present paper raises a processing model of decision making which is explained by taking framing effect and risk perception as the example. What’s more, the theory can also explain individual differences in decision making by analyzing individual differences between verbatim processing and gist processing. Finally, the deficiencies existing in current research and the directions for future research are discussed.

Key words: fuzzy-trace theory, framing effect, risk perception, individual difference