MENTAL MODEL · M6737

PACED

DecideHigh supportDecision Science

Included

Updated 2026-08-13

Loading revision record…

INTRODUCTION

English translation pending.

CORE DEFINITION

PACED is a decision-making model with five steps. Problem defines what is being decided. Alternatives lists the feasible options. Criteria establishes the standards against which options will be judged, such as cost, risk, and benefit, along with their relative weights. Evaluate scores each alternative against each criterion. Decide selects an option and records the reasoning. The model's central claim is that decision quality depends on making criteria explicit before comparing options, because criteria carry the decision maker's values and, left unstated, they shift to justify a preferred option.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

- Use criteria first: name and weight the evaluation standards before looking at the options. - Use visible weighting: write the weight of each criterion so the value trade-off is inspectable. - Use reason logging: record why the chosen option won so the decision can be reviewed later.

anchor

Anchor fast decisions

When criteria stay implicit, they are applied inconsistently: an attractive option is judged where it excels and a disliked one where it fails. Stating and weighting the criteria before evaluation removes that room, because every option is scored on the same standards. The weighted total then makes the trade-off explicit, which is what allows a decision to be explained and later audited. The model's value is procedural, since a poorly chosen criteria set still produces a confident and misleading result.

MINIMUM ACTION

In progress 0/1

Practice this model in one real situation:

Define the decision problem you face in one clear sentence. 2. List all the feasible alternatives you can realistically identify. 3. Name the evaluation criteria and assign each a weight. 4. Score every alternative against every criterion you listed. 5. Choose the highest-scoring option and write down the reasoning.

Check to track your progress (stored locally)

Learning progress0%

account_treeGenealogyexpand_more

menu_bookReferencesexpand_more

Source support: Explicit

link
stlouisfed.orghttps://www.stlouisfed.org/open-vault/2026/april/using-economic-reasoning-for-better-personal-financial-decisionsZH · Explicit
verified

RELATED MODELS