Week 4 Flashcards
What is outcome bias?
The outcome bias is an error made in evaluating the quality of a decision when the outcome of that decision is already known. Specifically, the outcome effect occurs when the same “behavior produces more ethical condemnation when it happens to produce bad rather than good outcome, even if the outcome is determined by chance.”
While similar to the hindsight bias, the two phenomena are markedly different. The hindsight bias focuses on memory distortion to favor the actor, while the outcome bias focuses exclusively on weighting the past outcome heavier than other pieces of information in deciding if a past decision was correct.
What are reasons against outcome-based reward?
It’s better to reward someone for the process than the outcome because part of the outcome is tied to process and part is tied to luck.
What is hindsight bias?
We tend to overestimate something that happened in the pasts.
What is false consensus?
People tend to falsely project their own biases on others?
i.e. if I like pizza, you will like pizza too
What is overconfidence bias?
Most people believe they’re better than average, better than others.
(i.e. I’m a better driver than him)
What is the self-fulfilling bias?
sometimes called the behavioral confirmation effect, commonly known as self-fulfilling prophecy, in which a person’s expectations influence their own behavior, bringing about the expected result.
What is confirmation bias?
Confirmation bias, also called myside bias, is the tendency to search for, interpret, favor, and recall information in a way that confirms one’s beliefs or hypotheses, while paying disproportionately less attention to information that supports alternative possibilities
