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;
9 Cards in this Set
- Front
- Back
|
Making it Up
|
construct, reconstruct, and recall preferences, beliefs and decisions only at times when they are necessary
|
|
|
Coherent Arbitrariness
|
preferences influenced by irrelevant cues
dont know WTA (arbitrariness), bbut they know how the WTA should relate to each other (coherence) |
|
|
Preferences and Markets
|
Babysitting and Shoe Smelling example
There is valuation on babysitting, but not on smelling shoes indicates that market prices (partly) determine people's preferences, backwards should be preferences influencing marketing prices |
|
|
Context Effect (aka Menu Effect)
|
Systematic ways in which a person's choice btwn 2 options depends on other options in her choice set
two options a and b two choice sets X and Y |
|
|
Asymmetric Dominance
|
A, B vs A, A-, B
context effect: choice depends on A or B depends on if there is a A- |
|
|
Choice Overload
|
too many choices; people might revert to a natural safe option or simple decision
|
|
|
Compromise Effect
|
a response to complex conflicted choices is to seek a compromise option
similar to asymmetric dominance |
|
|
Narrow Bracketing
|
We dont fully integrate the decision at hand w/ other decision and outcomes, even when its clear doing so would be better
|
|
|
Mental Accounting
|
the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities
assignment of funds to accounts experience as a loss reevaluation |
