Strategies of influence biases, judgements and decisions Flashcards
What is the principal and action of liking:
P: People like those who like them
A: Uncover real similiaries and offer genuine praise via finding similarities or praise.
Principal and action of reciprocity
P: People repay in kindness
A: Give what you want to receive
P and A of scoial proof
P: People follow lead of similar others
A: Use peer power whenever it is possible
P and A of consistency
P: People allign with their clear commitmnets
A: Make their commitments active, public, Voluntary
P and A in authority
P: People defer to experts
A: expose your expertise and do not assume it is explicit.
A and P in scarcity
P: People want more of what is less off
A: Highlight unique benefits and exclusive information
The positive effect of anchoring:
Serves to anchor the other player’s perception of your reservation price, for you to capture more of the ZOPA
What two things do an effective anchor rely on?
- The anchor has to besomewhat reasonable so other part is not walking away
- Highly depends on the other person’s homework. If they know your reservation price/BATNA, then it will become much less efficient.
Mention three types of framing:
- Losses versus gains
- Aggregation versus segregation
- Long horizon versus short horizon
What is pervasive optimistic bias according to Khaneman
Generates the illusion of control of our lives
Sunk cost meaning?
People tend to throw more money after bad to avoid regret due to sunk cost.
Behavioural consitency?
People have a tendency to behave or make decisions in a manner consistent with prior beliefs and actions
False consensus?
People hold the belief that their attitudes are widely shared by others
relationship between CE and EV
CE>EV: risk seeking
CE=EV: Risk neutral
CE
