Business Decision Making Review

These flashcards cover key vocabulary and concepts from the Business Decision Making lecture notes.

Cognitive Bias

Powerful, pervasive biases that resist education and are often 'hard-wired'.

Framing Effect

Cognitive bias where people's decisions are influenced by the way information is presented.

Anchoring

Cognitive bias where individuals rely too heavily on the first piece of information they encounter.

Confirmation Bias

The tendency to search for, interpret, and remember information in a way that confirms one’s preconceptions.

Survivor Bias

Logical error of concentrating on the people or things that survived a process and inadvertently overlooking those that did not.

False Consensus

A tendency to overestimate how much other people agree with one's own beliefs.

Groupthink

A psychological phenomenon where the desire for harmony in a group results in irrational or dysfunctional decision-making.

Procedures

Systematic processes designed to guard against biases and ensure good decision-making culture.

Premortem

A collective thought experiment conducted before a major decision to imagine potential failures and identify them before they occur.

Intellectual Humility

Recognition of the limits of one’s knowledge and abilities, fostering open-mindedness.

Intellectual Empathy

The ability to understand and appreciate another person's perspective and experiences.

Intellectual Courage

The willingness to engage in reasoning despite potential risks or discomfort.

Negotiation

A discussion aimed at reaching an agreement, focusing on compromise rather than a win-lose outcome.

Mediation

Involvement of a neutral third party to facilitate discussion and resolve disputes.

Legal Action

Involving a third party, such as a court, to resolve disputes where arguments are presented to a judge or jury.

Argumentation

The process of creating and exchanging arguments in an attempt to persuade others.