Cog Proc Judgement Quiz

anchoring

tendency to base decisions too heavily on the first piece of information given (ex. stating a higher than expected salary so you can negotiate down)

gambler’s fallacy

belief that past independent events influence future events (ex. roulette’s been black 20 rolls in a row. next has gotta be red!)

actor-observer bias

attributing one’s behavior to internal causes/attributes (ex. failing a test and attributing them to stupidity)

bounded awareness

tendency of focusing to a limited set of information, neglecting other relevant information

bounded ethicality

being influenced by our ethics that we are not aware of

bounded rationality

our judgement deviates from reality

bounded self-interest

tendency to choose a less-optimal outcome for themselves with the idea of being fair/supporting others

bounded willpower

tendency to give greater weight to present concerns than future concerns

framing

tendency to base decisions on how they are presented; a loss or win (ex. choosing the decision that appears as a win, despite both decisions having the same outcome)

heuristics

mental shortcuts to create our decisions, short circuiting the process

over confidence

excess confidence in their own abilities/judgement than objectively true

system 1

processes our intuitive system; fast, automatic, implicit, emotional thinking

system 2

slower, more conscious, effortful, logical thinking; involves 6 steps to making a rational decision

sunk cost fallacy

the reluctance to abandon a strategy due to their investment in it; relies on system 1 processing

sports contribution

teams who considered analyses over intuition saw more success

Johnson and Goldstein’s organ donation

presumed consent w/ the option to “opt out” produces higher donor rates than explicitly stating consent

Thaler and Sunstein’s nudge

small changes in option presentation can have a disproportionate effect on their decision

decision architects

can outline a strategy to change environments to account for human bias or trigger better decision-making