Unformatted text preview: but that there are systematic reasons For the violation resulting From certain elements within our decision procedures. Here are a Few ex-amples oF this kind that I fnd particularly relevant. Framing The Following experiment (conducted by Tversky and Kahneman 1986) demonstrates that the way in which alternatives are Framed may aFFect decision makers’ choices. Subjects were asked to imagine being conFronted by the Following choice problem: An outbreak oF disease is expected to cause 600 deaths in the US. Two mutually exclusive programs are expected to yield the Following results: a. 400 people will die. b. With probability 1/3, 0 people will die and with probability 2/3, 600 people will die. In the original experiment, a diFFerent group oF subjects was given the same background inFormation and asked to choose From the Following alternatives:...
View Full Document
- Fall '10
- Utility, Daniel Kahneman, Homo economicus, Amos Tversky