w5

Question 1

Bounded rationality 3

Answer 1

• Rationality of individuals is limited by:
• the information they have.
• the cognitive limitations of their minds.
• the finite amount of time they have to make a decision.

Question 2

The Representativeness Heuristic

Answer 2

steve has glasses and likes to read do you think he is a truck driver or teacher?

Question 3

the availability heuristic

Answer 3

easier to recall through drama, media etc. sharkattack

Question 4

study heristics letters

Answer 4

think of a letter: is it more likely to appera in the first position or in the last more last but you think of first

Question 5

bradwagon effect

Answer 5

fashionL tendecny to do thigs because othe do things

Question 6

scarcity effect

Answer 6

a phenomen associated with an i ncrease in value of goos when they ar sacre

Question 7

endownment effect

Answer 7

tendency for people to demand much more to give up an object they already have than they would be willing to pay to acquire it

Question 8

prospect theory assumes

Answer 8

thath losses and gains are valued differently and thus individuals make decisions based on perceived gains i nstead of losses

Question 9

decoy effect

Answer 9

goede optie naast slechte optie

Question 10

compromis effect

Answer 10

tendency to lean towards the middel option if options are hard to compar t