Judgement & Decision Making [W10] Flashcards
def: base-rate neglect
If presented with related base rate information and specific information, people tend to ignore the base rate in favour of the individuating information, instead of correctly considering both
def: judgement
the way people use cues to determine what’s happening in the external world
def: decision making
Wider process, which includes judgement, whereby people choose which action to take
def: natural sampling
a sample based on what generally happens in our every day lives, which may not be representative of the wider world
def: base rate
the relative frequency of an event within a given population
def: conjunction fallacy
the mistaken belief that the combination of two events is more likely than one of the two events on its own
def: heuristics
mental shortcut that allows people to solve problems and make judgements quickly and efficiently; rules of thumb
def: representativeness heuristic
the assumption that a person or object belongs to a specific category because it is typical of that category; almost like steretyping that someone belongs to a group whether or not they do
def: affect heuristic
using emotional responses to influence rapid judgements or decisions; “going with your gut”
def: availability heuristic
the tendency to use information that comes to mind quickly and easily when making a decision rather than using the actual frequency of that kind of event
def: recognition heuristic
making a choice among a set of alternatives by placing a higher value on the things you recognise
def: loss aversion
greater sensitivity to potential losses than potential gains; shown in most people who are trying to make a decision
def: framing effect
the finding that decisions can be influenced by situation aspects that are irrelevant to good decision making
def: sunk-cost fallacy/effect
you consider what resources (time, money, etc.) you’ve already put toward a previously unsuccessful decision and double down instead of giving up
Kahneman’s two systems of decision making…
1) fast, automatic, efortless, implicit, often emotionally charged, difficult to control or mod
2) slow, effortful, consciously monitered, deliberate, flexible, rule based
def: impact bias
overestimating how intense and long negative emotional reactions are going to be in the face of loss
def: support theory
events appear more or less likely based on how it’s described; more explicit description seems more likely (brings to mind less obvious aspects) than less explicit description
def: omission bias
bias toward harm through inaction over harm through action; would rather suffer due to inaction than suffer because you did something that caused you to suffer
def: omission bias
do nothing rather than do something that might have negative consequences, even if it’s irrational
def: status quo bias
bias toward maintaining the status quo over acting to change one’s decision
What biases can result from fear and anticipated regret over any rational framework?
status quo bias, omission bias, deferral
def: bounded rationality
the idea that people are as rational as their environment and processing capacity permits
that satisficers are _______ and ________ than maximisers (or perfectionists),
happier, more optimistic (Schwartz et al., 2002)
that satisficers are _______ and ________ than maximisers (or perfectionists),
happier, more optimistic (Schwartz et al., 2002)
