How do value judgements influence economic decision making and policy?

Decision making systemsFollowing the lead of Nobel Prize winner, Daniel Kahneman, behavioural theorists often use the two systems model to explain how decisions are routinely made.System 1System 1 is automatic and uses short-cuts to make quick decisions, often based on common sense estimates and emotional reactions to choice.System 2System 2 is a more deliberate decision making process, using conscious thinking an reflection. System 2 is much slower than System 1, and hence, in situations where a quick decision is required, System 1 is often the dominant system. While System 1 is often more convenient, it is subject to biases and errors which can lead to irrational decision making. System 2 is, however, more easily manipulated - perhaps towards decision making that is harmful to individual consumers, and to third parties.I got this from http://www.economicsonline.co.uk/Beh...g_systems.html