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10 Cards in this Set
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- Back
- 3rd side (hint)
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What theory did Jeremy Bentham & Mill come up with for decision making?
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Economic Utility Theory
The use of all rational options to maximize utility |
Economic Utility Theory |
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What are the assumptions of Economic Utility theory and who developed the theory?
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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 |
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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 |
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What is the Lens Model? Who came up with it?
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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 |
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What is decision making?
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Involves generating, selecting, and or evaluating relevant choices, where the rules for deciding are not obvious and the choices involve some risk or uncertainty
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What is the classsical decision making approach?
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developed primarily by economists who believed that people are always rational and carefully consider all of the options
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economist |
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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 |
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What are the types of misapplications of heuristics?
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Gamblers Fallacy
Law of Large numbers Availability Heuristic |
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What is the gamblers fallacy?
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belief that if an event has not occurred for a while, then it is more likely to occur in the near future
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HHHTTT HHTHTT |
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What is the Law of Large Numbers?
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Large samples will be representative of the population from which they have been selected.
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ex. Hospitals and M v F birth rate. |
