Psyc4030 T2

Front 1

What is the difference b/w a Prescriptive (normative) model and a descriptive model of decision making?

Back 1

-prescriptive (normative)- a model a/b how rational actors would behave is certain assumptions were met (how decisions should be made)
-descriptive model: how ppl actually make decisions (what we are observed to do)

Front 2

What is Satisficing?

Back 2

choosing path most important to needs, eventhough it may not be ideal or optimal
-"organisms adapt well enough to satisfice; they do not, in general, optimize"

Front 3

Components of Prospect theory
-developed by ___?
-key aspect is __? defined according to ?
-ppl are risk aversive in domain of __/ risk seeking in domain of __?
-Preferences depend on __?
-Tend to overweight __probabilites & underweight ___ probabilities.

Back 3

-Kahneman & Tversky
-Value, defined by gains/losses (from a reference point)
-gains/losses
-framing
-small/large &medium

Front 4

What r the 4 Descriptive types of Models for decision making?

Back 4

1. Satisficing
2. Prospect Thoery
3. Regret Thoery
4. Multi-attribute Choice

Front 5

What are the 2 key implications for Prospect Theory?

Back 5

1. Endowment Effect: value what they have more than they would place on it if they did not own it ("sunk costs"-makes it difficult to end things)
2. Certainty Effect: ppl prefer a reduction in risk to near zero to a greater one elsewhere (Russian Roulette)

Front 6

___ is when we compare the quality of our decisions to what we imagine the outcome would have been if we had chosen differently

Back 6

Regret Theory
-comparison on imagine outcomes: "Counterfactual reasoning"

Front 7

What are the 2 major assumptions of the regret theory?

Back 7

1. Experience sensation of regret & joy
2. When making decisions under uncertainty, try to anticipate and take account of these sensations (2 ppl running to catch plane)

Front 8

___deals with situations where choice cannot be made by a single measure.(Research focuses on __ people make decisions, not __ __)

Back 8

Multi-attribute choice
-HOW not "How well"

-can be compensatory (tradeoffs) & non-compensatory (no-tradeoffs)

Front 9

What are the 3 major types of compensatory strategies for multi-attribute choices?

Back 9

1. linear model:each demension weighted according to importance, each choice recieves a total index value or desirability (college admissions-not seen in real-world)
2. Additive Difference Model: Only differences included in comparisons (more realistic)
3. Ideal Point Model: decision maker has ideal in mind, evaluates each choice against the ideal (probably most common in real-world)

Front 10

What are the 4 major types of non-compensatory strategies for multi-attribute choices?

Back 10

1. Conjunctive (and): Eliminate alternatives that fall outside predifined boundaries (cutoff scores)
2. Disjunctive (or): Each alternative evaluated in terms of the "best attribute" regardless of quality of other attribute (really good on features A & B, might look over not being good at other)
3. Lexicographic (choose best): Begin by choosing most important attributes & most desirable alternative on that attribute, if multiple candidtes remain, move to 2nd most important attribute and compare
4. Elimination by aspects (eliminate worst until left w/ best):

Front 11

__ is a "rule of thumb" that gives you the right answer most of the time. BUT can sometimes cause us to be biased.

Back 11

Heuristic

Front 12

___is systematic tendencies toward a particular outcome in ppl's thought processes (heuristics can sometimes cause this)

Back 12

Biases

Front 13

___ refers to ppl judging probability by the degree to which A resembles B; decision is based on similarity of current situations w/ past situations
-specific scenariois appear more likely than general ones (eventhough they arn't) b/c they are more representative of how we imagine particular events

Back 13

Representativeness Heuristic

Front 14

How is the Representative Heuristic shown in the case of "Linda"?

Back 14

**ppl only take into account the given facts and not the probability present in the situation (i.e. conjunction fallacy)
Is it more likely that Linda is a bank-teller or linda is a bank-teller and is active in the feminists movement? (most common)

Front 15

What is conjunction fallacy? when does it occur?

Back 15

conjunction, or co-occurance of 2 events can't be more likly than the probability of either event alone (linda is a bank teller vs. linda is a bank teller who is an activist)
-occurs when you rely on representative heuristic and not math logic.

Front 16

___ is when ppl assess the frequency of a class or probability of an event by the ease with which instances or occuranes can be brought to mind
-some events will be more available for consideration bc they are recent, easier to think ab, emotional, or plausible

Back 16

Availability Heuristic

Front 17

concerning randomness and judging probabilistic events like coin flips, ppl typically assume that randomness will be reflected __ (over times) & ___(in a given sequence)

Back 17

globally (over time)
locally (in a given sequence)

Front 18

Availability Heuristic- if outcomes are plausible and easily imagined then ___; BUT if asked to imagine an extemely negative event (like getting cancer)-ppl are ...?

Back 18

-it seems more probable
-not persuaded to believe this imagined event as more likely