Perception and Individual Decision Making

A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. People’s behavior is based on their perception of what reality is, not on reality itself. The world as it is perceived is the world that is behaviorally important. When individuals observe behavior, they attempt to determine whether it is internally or externally caused. The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.