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JDMA kk


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[Front]


Normative decision making
[Back]


how people should make judgments and decisions

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JDMA kk - Detalles

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Preguntas:

57 preguntas
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Heuristics
Mental shortcuts to find adequate imperfect answers to difficult questions
Planning fallacy
Underestimating the probability that at least somethings will go wrong overestimate the probability of conjunctive events underestimate the probability of disjunctive events
Normative decision making
How people should make judgments and decisions
Normative decision making
How people should make judgments and decisions
Utility
Whatever is maximized
Planning fallacy
Underestimating the probability that at least somethings will go wrong overestimate the probability of conjunctive events underestimate the probability of disjunctive events
Descriptive decision making
How people actually make judgments and decisions
Descriptive decision making
How people actually make judgments and decisions
Prospect theory
Gains and losses are evaluated differently based on risk and uncertainty
Prescriptive decision making
Practical suggestions on designing judgment and decision making processes based on normative and descriptive models
Prescriptive decision making
Practical suggestions on designing judgment and decision making processes based on normative and descriptive models
Ambiguity aversion
Willing to pay less for a vague choice than for a clear choice
System 1
Fast intuitive system of decision making
System 1
Fast intuitive system of decision making
Framing
Presenting something as a gain or a loss
Mental accounting
Different accounts for different purposes. Gains and losses feel different depending on which account it is booked
Reality of decision making
Only use a subset of available information in a biased way
System 2
Slow effortful system of decision making
System 2
Slow effortful system of decision making
Representativeness consists of
Insensitivity to base rates: we tend to ignore priors insensitivity to sample size: fail to appreciate the importance of sample size
Cognitive dissonance
Mental discomfort when our actions don't match our beliefs
Cognitive dissonance
Mental discomfort when our actions don't match our beliefs
Pattern recognition
Focus on cause effect stories where chance and randomness are easily overlooked
Heuristics
Mental shortcuts to find adequate imperfect answers to difficult questions
Regression to the mean
Numbers tend to their long term average
Utility
Whatever is maximized
Motivated reasoning
Unconsciously favor information that supports our pre existing beliefs rather than contradicting information to arrive at our desired outcome
Prospect theory
Gains and losses are evaluated differently based on risk and uncertainty
Decision crossover effect
Future promotion decisions are based on current performance evaluations
Ambiguity aversion
Willing to pay less for a vague choice than for a clear choice
Moral disengagement theory
People use common moral standards to control their actions and avoid breaking these rules
Loss aversion
We rather avoid a loss over receiving the same size gain
Loss aversion
Rather avoid a loss over receiving the same size gain
Elastic justification theory
How people stretch their reasoning to justify their decisions or actions to themselves and others
Endowment effect
We attach a higher value to something that we own than what we don't own
Endowment effect
We attach a higher value to something that we own than what we don't own
Risk aversion (different from risk averse)
We prefer a certain gain over a larger gain with more risk
Framing
The way information is presented influences judgments and decisions
Status quo bias
The tendency to maintain the current situation
Mental accounting
Different accounts for different purposes. Gains and losses feel different depending on which account it is booked
Sunk cost fallacy
Justify investment despite evidence suggesting that continuing will outweigh the expected benefit
Reality of decision making
Only use a subset of available information in a biased way
Escalation of commitment
Rationalizing decisions when faced with increasingly negative outcomes rather than altering course
Representativeness consists of
Insensitivity to base rates: we tend to ignore priors insensitivity to sample size: fail to appreciate the importance of sample size"
Social norms
Rules and standards that are understood by members of a group without force of law
Pattern recognition
Focus on cause effect stories where chance and randomness are easily overlooked
Sacred values
No one is harmed but it feels wrong
Regression to the mean
Numbers tend to their long term average
Motivated blindness
Deliberately looking the other way when someone does an immoral action that benefits us
Motivated reasoning
Unconsciously favor information that supports our pre existing beliefs rather than contradicting information to arrive at our desired outcome
Moral cleansing
Compensate bad behavior with good behavior to restore self image
Planning fallacy
Underestimating the probability that at least somethings will go wrong overestimate the probability of conjunctive events underestimate the probability of disjunctive events
Planning fallacy
Underestimating the probability that at least somethings will go wrong overestimate the probability of conjunctive events underestimate the probability of disjunctive events
Moral licensing
Using good behavior from the past by allowing bad behavior now
Decision crossover effect
Future promotion decisions are based on current performance evaluations
Availability heuristic
Things that come to mind easier are judged as more likely
Moral disengagement theory
People use common moral standards to control their actions and avoid breaking these rules
Confirmation heuristic
Judgments are influenced by what we expect
Elastic justification theory
How people stretch their reasoning to justify their decisions or actions to themselves and others
Representativeness
Judgments are influenced by what it typical for its category
Risk aversion (different from risk averse)
We prefer a certain gain over a larger gain with more risk
Affect
Judgments are influenced by our mental state
Expectation gap
Differences between the interpretation and the openness to other possible explanations
Risk neutral
Utility increases proportionally with wealth. Decisions are indifferent to risk
Increased pupillary response
Increased arousal which causes greater attention and cognitive processing
Risk averse
Utility increases with wealth at a decreasing rate
Over optimism
Individuals believe they have greater control over uncertain events
Risk seeking
Utility increases with wealth at an increasing rate
Miscalibration
Individuals underestimating the variance of uncertain outcomes and set distribution too narrow
Overprecision
We feel too certain about our accuracy in our judgments and decisions
Social comparison
Compare own performance with someone else's
Overestimation
We tend to think we are better than we actually are
Overplacement
We falsely tend to think we are better than others in certain aspects
Bounded awareness
Overlooking important information when making decisions because our focus is limited by cognitive constraints
Bounded rationality
Making irrational decisions that are good enough due to cognitive limitations
Bounded ethicality
Cognitive constraints fools us to act in our self interest to make unethical decisions
Social preference
Preferences about the outcome of other people
Status quo bias
The tendency to maintain the current situation
Affect
Judgments are influenced by our mental state
Bounded ethicality
Cognitive restraints fools us to act in our self interest to make unethical decisions
Status quo bias
The tendency to maintain the current situation
Sunk cost fallacy
Justify investment despite evidence suggesting that continuing outweighs the expected benefit
Risk neutral
Utility increases proportionally with wealth. Decisions are indifferent to risk
Bounded ethicality
Cognitive restraints fools us to act in our self interest to make unethical decisions
Sunk cost fallacy
Justify investment despite evidence suggesting that continuing outweighs the expected benefit
Escalation of commitment
Rationalizing decisions when faced with increasingly negative outcomes rather than altering course
Risk averse
Utility increases with wealth but at a decreasing rate
Escalation of commitment
Rationalizing decisions when faced with increasingly negative outcomes rather than altering course
Social norms
Rules and standards that are understood by members of a group without force of law
Overprecision
We feel too certain about our accuracy in our judgments and decisions
Social norms
Rules and standards that are understood by members of a group without force of law
Sacred values
No one is harmed but it feels wrong
Overestimation
We tend to think we are better than we actually are
Sacred values
No one is harmed but it feels wrong
Motivated blindness
Deliberately look the other way when someone does an immoral action that benefits us
Overplacement
We falsely tend to think we are better than others in certain aspects
Motivated blindness
Deliberately look the other way when someone does an immoral action that benefits us
Moral cleansing
Compensate bad behavior with good behavior to restore self image
Bounded awareness
Overlook important information when making decisions because our focus is limited by cognitive constraints
Moral cleansing
Compensate bad behavior with good behavior to restore self image