Chapter 10

Front 1

Decision making

Back 1

identifying and choosing solutions that lead to a desired state of affairs

Front 2

Judgmental Heuristics

Back 2

rules of thumb or shortcuts that people use to reduce information processing demands

Front 3

Availability Heuristic

Back 3

Events that are vivid, easily managed, or consistent with memory structures are judged to be more likely than equally probably events.

Front 4

Anchoring & Adjustment Heuristic

Back 4

we do not adjust estimates sufficiently from an initial anchor
Ex. Salaries - negotiation will be anchored around the first offer

Front 5

Overconfidence in Interval Estimation

Back 5

We paradoxically express more confidence in estimates of evens we are less familiar with than events we are more familiar with

Front 6

Framing

Back 6

1. Gains - Risk Averse
2. Losses - Risk Seeking

Front 7

Individuals vs. Groups

Back 7

-Individuals are better brainstormers
-Groups are better decision-makers

Front 8

When to use groups

Back 8

1. If additional info will increase value
2.
3.