chapter 11 vocab

Question 1

anchoring

Answer 1

the bias to be affected by an initial anchor, even if the anchor is arbitrary, and to insufficiently adjust our judgements away from that anchor

Question 2

biases

Answer 2

the systematic and predictable mistakes that influence the judgement of even very talented human beings

Question 3

bounded awareness

Answer 3

the systematic ways in which we fail to notice obvious and important information that is available to us

Question 4

bounded ethicality

Answer 4

the systematic ways in which our ethics are limited in ways we are not even aware of ourselves

Question 5

bounded rationality

Answer 5

model of human behaviour that suggests that humans try to make rational decisions but are bounded due to cognitive limitations

Question 6

bounded self-interest

Answer 6

the systematic and predictable ways in which we care about the outcomes of others

Question 7

bounded willpower

Answer 7

the tendency to place greater weight on present concerns rather than future concerns

Question 8

framing

Answer 8

the bias to be systematically affected by the way in which information is presented, while holding the objective information constant

Question 9

heuristics

Answer 9

cognitive (or thinking) strategies that simplify decision making by using mental short-cuts

Question 10

overconfident

Answer 10

the bias to have greater confidence in your judgement than is warranted based on a rational assessment

Question 11

system 1

Answer 11

our intuitive decision-making system, which is typically fast, automatic, effortless, implicit, and emotional

Question 12

system 2

Answer 12

our more deliberative decision-making system, which is slower, conscious, effortful, explicit, and logical