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Free Essay / Term Paper: Effect of Stress on Decision Making

Stress must be present to ensure our very being. One may wonder about the validity of this statement, but it is quite true. Stress plays a vital role in the way we make decisions (Massa et al, 2002, pg 1). Problem solving and decision making in demanding real-world situations can be susceptible to acute stress effects which manifest in a variety of ways depending on the type of decision. The negative effects of an overload of acute stress include attentional tunneling, working memory loss, and restrictions in long term memory retrieval, with simple strategies being favoured over more complicated ones. The underlying assumption is that stress can lead to errors, poor performance and bad decisions. However, acute stress does not necessarily always have a detrimental effect on decision making, rather stress may affect the way information is processed. Some of those changes in strategy in response to stress are in fact adaptive. They reduce and select the information being attended to and processed, in response to high time pressure and reduced cognitive capacity (Flin, 2004, pg 42....

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