Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
What theory did Jeremy Bentham & Mill come up with for decision making?
|
Economic Utility Theory
The use of all rational options to maximize utility |
Economic Utility Theory
|
|
|
What are the assumptions of Economic Utility theory and who developed the theory?
|
Assumptions
People are completely informed of all options and their consequences People are sensitive to the differences in these options People will make decisions to maximize some utility |
Jeremy, Bentham & Mill
|
|
|
Who came up with the concept of Satisficing?
What is the concept of satisficing? |
Simon
We consider the options until we find one that works. |
1957
"good enough option" Humans are not rational |
|
|
What is the Lens Model? Who came up with it?
|
Brunswick in 1934.
You make decisions through the lens of perception. Multiple cues in environment (that can be ambigious and fallible) are used to make decisions. |
decision making
|
|
|
What is decision making?
|
Involves generating, selecting, and or evaluating relevant choices, where the rules for deciding are not obvious and the choices involve some risk or uncertainty
|
|
|
|
What is the classsical decision making approach?
|
developed primarily by economists who believed that people are always rational and carefully consider all of the options
|
economist
|
|
|
What is the representativeness Heuristic?
Who developed it? |
(Kahneman & Tversky, 1972)
The tendency to assume that, if an object is similar to members of a particular category, it is probably a member of that category itself. |
social stereotypes
|
|
|
What are the types of misapplications of heuristics?
|
Gamblers Fallacy
Law of Large numbers Availability Heuristic |
|
|
|
What is the gamblers fallacy?
|
belief that if an event has not occurred for a while, then it is more likely to occur in the near future
|
HHHTTT HHTHTT
|
|
|
What is the Law of Large Numbers?
|
Large samples will be representative of the population from which they have been selected.
|
ex. Hospitals and M v F birth rate.
|
