Decision Making
Decision Making
Decision Making
Fichier Détails
| Cartes-fiches | 144 |
|---|---|
| Langue | Deutsch |
| Catégorie | Psychologie |
| Niveau | Université |
| Crée / Actualisé | 17.06.2024 / 18.06.2024 |
| Lien de web |
https://card2brain.ch/box/20240617_decision_making
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Our intuitive decisions are heavily influenced by
Status quo bias is a
Reluctance to change mobile provider, energy provider, bank, etc. can be a cause of
To what leads the Loss aversion ?
Status quo bias
What is Loss aversion ?
Loss is weighted more heavily than an equivalent amount of gain.
Name the methods to overcome status quo bias.
- Revolving door test
- Consider limited number of options
- Reverse situation
- Create some distance before deciding
- Test new options, decide later
Attribute one of the fourfold patterns of risk attributes to this action:
Playing the lottery
When you either get CHF 100 if you win, or get nothing if you lose: Please explain, why (according to the homo oeconomicus) you should flip a coin instead of taking CHF 40 without throwing a coin
The expected utility of flipping a coin is EU = 1/2*100 + 1/2*0 --> EU = 50
The expected utility of taking CHF 40 is EU = 1*40 --> EU = 40
How does the sunken cost fallacy work and how does it lead to the status quo bias?
Already incurred costs (money, effort, time) are considered in decision making -> Continued investment to avoid wasting already accrued costs even though decision cannot be justified anymore and further investment will not create any benefit in the long run.
How could regret aversion lead to the status quo bias?
Regret aversion causes status quo bias because actions that lead to poor results cause stronger regret than actions not taken which lead to poor results.
An insurance company listing each policy discount individually (loyalty discount, safe driver discount, etc.) would be an example of hedonic framing.
Decision making under risk and uncertainty can be explained or is influenced by which heuristics and biases?
Loss aversion, Conjunction fallacy, status quo bias, Avalability heuristic, framing, anchoring
Which of the following are examples of the status quo bias?
What is an example for resulting behavior for high probability of loss?
rejects favorable option, not playing again
What emotion and motivation influence our behavior in the case of the risk attitude "high probability of a gain"?
Fear of disappointment
Which probabilities are usually overweight?
Attribute one of the fourfold patterns of risk attributes to this action:
Playing the lottery:
The "Fourfold pattern of risk attitudes" refers to a categorization or classification of attitudes towards risk based on two dimensions: risk aversion and risk seeking.
Does risk averse behavior manifests itself in high probability situations?
Why will many people decide to pay a premium without a deductible when for example purchasing insurance on a rental car?
Many people (unconsciously) overestimate the probability of a damage occurring and therefore overestimate the probability of paying the deductible.
Which of the following is a limitation of expected utility theory?
How is the expected utility of an outcome calculated in expected utility theory?
According to prospect theory, individuals tend to exhibit risk-averse behavior when faced with:
The "framing effect" in prospect theory refers to the idea that:
According to prospect theory, which of the following best describes the principle of decreasing sensitivity?
