Decision Making and Creativity - Chapter 7

Question 1

Anchoring and Adjustment Heuristic

Answer 1

A natural tendency for ppl to be influenced by an initial anchor point such that they do not sufficiently move away from that point as new info is provided.

Question 2

Availability Heuristic

Answer 2

A natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by non probability factors.

Question 3

Bounded Rationality

Answer 3

The view that some ppl are bounded in their decision-making capabilities, including access to limited info, info processing, and tendency to satisficing rather than maximizing when making choices.

Question 4

Divergent Thinking

Answer 4

Reframing a problem in a unique way and generating different approaches to the issue.

Question 5

Prospect Theory Effect

Answer 5

A natural tendency to feel more dissatisfaction from losing a particular amount than satisfaction from gaining an equal amount.

Question 6

Representative Heuristic

Answer 6

A natural tendency to evaluate probabilities of events or objects by the degree to which they resemble other events or objects rather than on objective probability info.

Question 7

Scenario Planning

Answer 7

A systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those enviros.