Index > Course > 2021-04-27: Chapters 3 and 4 review; Representative Thinking
Assignment 6 is due May 5th. It’s a thick one, so get started early.
Remaining Classes:
More about the test:
Phrasing a question different ways can yield different answers, even if the situation is the same.
Prospect Theory: A gain of $10 is very impactful, another $10 is less impactful. A loss of $10 should be moderately impactful, while another loss of $10 is even more impactful. Your last dollar is your most important one. But - this is not how people behave.
People behave as if the first $10 loss is very impactful, and further losses are not as impactful. This is backwards from how losses “should” be viewed.
Ordering Alternatives - we read from left to right, and this introduces some bias.
I am falling asleep. I did an all-nighter last night and it’s just now catching up to me
Satisficing: Finding the option that satisfies you, even if it isn’t the optimal choice. There might be a delicious meal on the second page of the restaurant’s menu, but if you’ve found something worthwhile on the first page, you could be done. There might be good reasons for this - searching through additional options takes time.
Throwing in a decision option, but forbidding the decider from taking it, should not have an impact on the decision making process - But in reality, it has a large effect.
You won’t drive across town to save $100 when buying a car, but you will when buying a vacuum cleaner.
Representative Thinking is latching onto details, giving them too much weight. We do this even when we know we shouldn’t.
Given some characteristics of, say, a person, we then try to extrapolate that to a schema of what we imagine the person is like. Then, we extract more characteristics from that schema.
Index > Course > 2021-04-27: Chapters 3 and 4 review; Representative Thinking