Introduction Flashcards
Individualism and consequentialism are a pillar of the neoclassical economics
True
Neoclassical economics uses mathematical normative models
True
According to neoclassical economics, the market is the perfect allocative mechanism
True
According to neoclassical economics, organizations are agents capable of action
False, 14
The postulate of ??? tells that only individuals are economic agents capable of action
Individualism
According to neoclassical theory, knowing the opinion of an individual is not important. Only actions matter
False
The postulate of ??? requires that agents take choices given that they know their consequences
Consequentiality
According to NCE (neoclassic economics) people know that their choices will lead to known consequences
True
An agent is interested only in the consequences that they will face
True
The postulate of ??? requires that agents take into account only the consequences they will personally face when it’s time for a decision
Selfishness
According to NCE, every decision whose benefits are higher than the costs can be chosen
False
The postulate ??? tells that people maximize their utility by taking the choice that at most maximizes the positive difference between benefits and costs
cost-benefit calculation
The postulate of ??? requires the researcher to understand an agent’s actions, beliefs, and opinions in order to understand social phenomenon
understanding
According to NCE, agents are able to get the best possible results given some constrains (substantial rationality)
True
According to NCE, agents maximize their utility function
True
If an agent does not optimize their utility function best they reach the results rationality, it is said that they follow ??? rationality instead of ??? rationality
INCOMPRENEIBILR
procedural, substancial
??? is an invented word for describing the behavior of procedural rationality
Satisficing
Target the Two experiments showed that people do not create habits if they work with repetitive activities
False
In the target the two experiments there is one player that can change their card with the target if they are of the same color while the other can exchange only if they are of the same number
True
In the game “target the two”, strategies 442 and 224 are indifferent to the initial desk
False
??? are mental shortcuts that help the decision makers to build judgements and to take decisions that can be efficient considering the cognitive constraints
Heuristics
??? are decision makers’ systematic and unconscious patterns of responses to judgment and decision problems. ??? are often produced using heuristics
Biases
We can define heuristics as low-awareness “decision modules”
True pg 51
We are aware, when we use a heuristic, that we are using it
False 51
Biases are systematic errors of judgment that result from the use of heuristics
True
Heuristics are always inefficient decision model
False
Representativeness
Availability
Adjustment and anchoring
Are some famous heuristics
True
The ???? heuristics implies that when a property is highly representative of A, then the probability that the property originates from A is considered high
Presentativeness
“I tossed a coin four times and it always came tail, therefore the coin is rigged”. This is an example of what heuristics?
Representativeness heuristics (insensitivity to sample size)
“He’s a very eccentric man, he must work in something related to creativity” is an example of what heuristics?
Representativeness (base-rate frequencies)
The ????? is a statistical phenomenon so that given one extreme sample of a stochastic variable, another sample will be nearer to the mean
Regression toward the mean
The performance in a test is normally distributed with a mean of 100 and a standard deviation of 15. People come not prepared for the test, which contains questions regarding any kind of education field. Two persons’ scores stand out.
One person’s score is 130. This person is praised
Another person’s score is 70. This person is reprimanded.
Since the score of the two samples are random when they repeat the test the results are 97 for the first person and 102 for the second.
Therefore the instructor thinks that reprimanding enhances performance while praising does the contrary.
This describes which statistical effects?
Regression towards the mean
In general, the frequency of salient and recent events is overestimated because of which heuristics?
Availability
“One month ago there was a radiation leakage at the nuclear plant. Nuclear power is a high danger for our health “ This thought describes which heuristics?
Availability
The ??? heuristics says that the probability of an event is defined according to the ease with which the event comes to mind
Availability
T&K proved that given lists of famous people of different sexes, the guessed majority sex was correlated with a high percentage of relatively more famous people of that guessed sex in the list.
This experiment regard which heuristics?
Availability
If we show these sequences to two different people, one for each
8x7x6x5x4x3x2x1
1x2x3x4x5x6x7x8
and we ask the people to guess the results, we can expect that the former result will be significantly higher than the latter. This is due to which heuristics?
Anchoring
Estimations are done starting from an initial value and then adjusted with respect to this reference, which is generally insufficient.
This defines which heuristics?
Anchoring/adjustment
If we show this sequence to a person
8x7x6x5x4x3x2x1
And we ask them to guess the result
We can think that their guess will be significantly lower that the actual value. This is due because of which heuristics?
SBAGLIATA
Anchoring
