05-02 Lecture Slides (Final)

Heuristics 1 the availability heuristic covered on

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Unformatted text preview: Utility theories ¨༊  Under many situations, however, utility theories do not fully describe human decision making n༆  n༆  Preference reversal Framing effect 1 5/1/13 Decision Making Heuristics (covered on 04/30) n༆  Tversky and Kahneman’s influential proposal: ¨༊  People are more likely to make decisions based on heuristics than utility theories suggest n༆  Some of the major heuristics (1) The availability heuristic (covered on 04/30) (2) The representativeness heuristic (to be covered today) (3) The anchoring and adjustment heuristic (to be covered today) n༆  Though often useful, these heuristics can bias your decisions (1) Availability Heuristic (covered on 04/30) n༆  n༆  A strategy based on how easily relevant examples can be retrieved from memory Example of “bias” due...
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