Prudence Theory of Learning and Choice

This is a new unpublished theory in psychology. Its application includes in economics, management and other disciplines. For original academic papers and custom essay, click here.

Prudence theory of learning and choice will explain individual differences when it comes to decision making. The foundation of this psychological theory is the concepts of opportunity cost and choice. Communities and individuals who have access to equal opportunities have achieved varied milestone in life due to the choices they have made. According to the proposition of the prudence theory of learning and choice, varied results emanates from the ability of individuals to undertake careful thought to evaluate the alternative options. This involves memory of past experiences, ability to learn from and awareness of prevailing conditions. In addition, cognitive capacity to process information and reach at the most appropriate choice is paramount.

Another hypothesis for the study is that individuals are able to learn from experience, apply them in the present and use acquired knowledge to project future events and or results. Ormrod (2012) argues that paring of stimulus and subsequent response (s) aids in gaining knowledge of how choices influence the final result both in the present and the future. Individuals acquire knowledge of choosing the best option from experience, thus, the prudence theory of learning and choice. The development of the prudence theory of learning and choice borrows a lot from cognitive theories of learning, which states that, the memory system of an individual continually process information and experiences and knowledge is significant in learning and acquiring knowledge (DeJong, 2010; Ormrod).

We hold the premise that individuals will always choose the best option when presented with many choices. However, this does not happen due to individual differences, and ability to make an informed decision. According to Adam Smith’s theory of moral sentiments 1759 (Doomen, 2005), men are not able to form absolute moral judgments that are not centered on self-interest. This he said in his book The Wealth of Nations (1776) is eating on the overall social benefit (Doomen, 2005).