Thinking fast and slow Flashcards
ego depletion
if you have to force yourself to do something, you are more likely to fail at the next task
glucose helps
Flow
A state of concentration so deep that the person loses sense of surroundings, self, and problems
associatively coherent
things that evoke memories or emotions
priming
words that are set to bring up other words to mind
Lady MacBeth effect
The thought of committing a crime causes people to buy cleaning products more frequently than other products
pastness
when you remember something but can’t quite know why it’s possesses this quality in which it has no mental file, yet you know you have seen it before
mere exposure effect
as things become more familiar our perception of such things becomes more positive
framing effect
how information is presented effects how we interpret it, we are easily biased
base rate neglect
we usually neglect base rates
statistical matching
earliest reading age equals grade point average, this is wrong
mental shotgun
it is impossible for system one to not do more than system to commands it to do
substitution
A heuristic question used as a replacement for a targeted trickier question, we answer an easier question
The affect heuristic
people let their likes and dislikes form their opinion of the world
we pay more attention to content. What should we pay more attention to?
reliability
what is the issue with small samples in regards to case studies
they pose the same issue
anchoring effect
when people are given a number and then asked to estimate, the estimate is usually rooted in the previous number
vividness effect
we are more likely to be cautious when a bad event is easily accessible in our mind
availability cascade
A self-sustaining chain of events which may start from media reports of a relatively minor event, and lead up to a large-scale government impact and public panic
affect heuristic
we are influenced by our opinions so much that we cannot create objective pro – con list
representativeness
we make a judgment on probability based on the association system one brings up
statistical base rates
these are usually underweighted
causal base rates
treated as information about the original case
The halo effect
inclines us to match our views of all the qualities of a person to our judgment of one attribute
I knew it all along effect
our propensity to forget our past surprise at what we now know
rejoinder
A sharp or witty reply
adversarial Collaborations
scholars who do not agree on each other’s science write a collaborative paper
expert intuition
The intuition gained in a particular field by an expert of the such
intuition is nothing more and nothing less than what?
Recognition
“Intuitions” are?
are most often unrecognizable triggers from a past experience
subjective confidence
why is this troublesome?
we are most confident when we cannot think of any competing scenarios
troublesome as certainty can only come from attempts to disprove
base-rate information
prior probabilities
Inside view
more optimistic, less realistic
outside view
more realistic, less optimistic, that of statistics
forecasting method
how to find the base rate
- identify reference class
- compare statistics to your projections
- adjust your prediction accordingly
sanguine
optimistic or positive
what gives us an illusion of control?
our neglect of the role of luck
anove average effect
when asked to rate your relative skill at something you find difficult you will claim that you are under qualified at this task. However if you are moderately good at a task you will claim to be well above the average
loss aversion ratio
people are only willing to accept a loss if the chances of gain are twice that of the loss
indifference curve
hyperbola
all spots on the curve are equally desirable
vacation vs income
the endowment effect
owning something appears to increase its value
system 1
occurs when owners view their goods as carriers for future value
prospect theory
reference points exist
loss aversion has a large effect
the poor think like traders, however their choices are based on what?
loss rather than gain
negativity dominance
a cherry will do nothing for a bowl of cockroaches, but a cockroach will ruin a bowl of cherries
altruistic punishment
punishing a stranger for treating another unfairly
lights up pleasure centers in the brain
neuroeconomist
someone who combined brain science with economic theories
who suffers more? people who lose, or people who failed to gain?
people who lose
possibility effect
0-5%
causes highly unlikely outcomes to be weighted heavier than they deserve
probability effect
95-100%
outcomes that are more probable are given less weight than their probability should employ
the expectation effect
values are rated by their probabilities
poor psychology
availability heuristic
experience based technique for problem solving
we are usually in confirmatory mode
denominator neglect
if your attention is drawn to winners, you will less likely assess the losers
choice from experience
usually underweight risks
never overweight risks
choice from description
probability is usually overweighted
narrow framing
a sequence of two simple decisions considered separately
humans are narrow framers
broad framing
one comprehensive decision
equal or superior to narrow framing in all cases
which is better? narrow or broad framing?
broad
a risk policy that aggregates decision is analagous to which view?
outside view
omission
to leave out something
commission
an instruction or order, the act of fulfilling an order or instruction
mental accounts
keeps things controllable and manageable for the finite mind
narrow framing, system 1
which system does narrow framing take place in?
system 1
the disposition bias
people prefer to sell winners rather than losers
regret
that sinking feeling when you can easily imagine what you might have done instead
risk of regret
much higher when an active choice is involved instead of a passive choice
responsibility
the price of a decision is much higher if there is a responsibility involved
poignancy
close couson to regret
if only he had stopped at his regular store
valubility hypothesis
things arent valuable until evaluated against alike things
experienced utility
how much pain or pleasure we have when we make a decision
decision utility
wantability
nothing to do with experiences, simply rationality
hedonimetet
imaginary thing that measures pain
experiencing self
does it hurt now
remembering self
how much did it hurt overall
peak end rule
how things end is how we remember
amnesic
forgetful
u-index
time a person or population spends in an unpleasant state
what is the greatest predictor or happiness?
how much time we spend with loved ones
the focus effect
nothing in life is as important as it seems when you are thinking about it
miswanting
we believe that a change in circumstances will significantly improve our sense of well being
