The number of people in auction common biases and

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Unformatted text preview: only the facts that support our decision Winner’s Curse – Highest bidder pays too much – Likelihood of “winner’s curse” increases with the number of people in auction Common Biases and Errors Common Biases and Errors Common Escalation of Commitment – In spite of new negative information, commitment actually increases Randomness Error – Creating meaning out of random events Hindsight Bias – Looking back, once the outcome has occurred, and believing that you accurately predicted the outcome of an event Intuition Intuition Intuition Intuitive Decision Making – An unconscious process created out of distilled experience Conditions Favoring Intuitive Decision Making – – – – – – – – A high level of uncertainty exists There is little precedent to draw on Variables are less scientifically predictable “Facts” are limited Facts don’t clearly point the way Analytical data are of little use Several plausible alternative solutions exist Time is limited and pressing for the right decision IIndividual Differences in Decision Making ndividual Differences in Decision Making Persona...
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