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8 Cards in this Set
- Front
- Back
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Decision making
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identifying and choosing solutions that lead to a desired state of affairs
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Judgmental Heuristics
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rules of thumb or shortcuts that people use to reduce information processing demands
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Availability Heuristic
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Events that are vivid, easily managed, or consistent with memory structures are judged to be more likely than equally probably events.
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Anchoring & Adjustment Heuristic
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we do not adjust estimates sufficiently from an initial anchor
Ex. Salaries - negotiation will be anchored around the first offer |
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Overconfidence in Interval Estimation
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We paradoxically express more confidence in estimates of evens we are less familiar with than events we are more familiar with
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Framing
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1. Gains - Risk Averse
2. Losses - Risk Seeking |
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Individuals vs. Groups
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-Individuals are better brainstormers
-Groups are better decision-makers |
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When to use groups
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1. If additional info will increase value
2. 3. |
