Depressive Decision-Making
Briefly

The article explores how individuals with depression make decisions that often keep them trapped in negative situations. It challenges the notion that depression equates to self-punishment, instead suggesting that it serves as an evolved strategy to avert further loss. Using a framework based on Modern Portfolio Theory, it illustrates how depressed individuals prioritize loss aversion over potential gains, leading to a passive and isolated existence. The author emphasizes the need for proactive behavior to facilitate emotional improvement and overcome the tendencies of depression-driven decision-making.
For many years, I have been interested in how depressed people make decisions that keep them stuck in bad situations, isolated and passive, while perpetuating their own misery.
My model of depressive decision-making was initially based on Modern Portfolio Theory, developed by Nobel Prize laureate Harold Markowitz. Many of the dimensions of decision-making draw on this earlier model of how different investors consider how to invest.
Read at Psychology Today
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