exam 3: Judgement and decision-making

anchoring

The bias to be affected by an initial anchor, even if the anchor is arbitrary, and to insufficiently adjust our judgments away from that anchor

biases

The systematic and predictable mistakes that influence the judgment of even very talented human beings

bias blindspot

People have a tendency to believe that they are less biased than their peers

bounded awareness

The systematic ways in which we fail to notice obvious and important information that is available to us

bounded ethicality

The systematic ways in which our ethics are limited in ways we are not even aware of ourselves

bounded rationality

Model of human behavior that suggests that humans try to make rational decisions but are bounded due to cognitive limitations

bounded self-interest

The systematic and predictable ways in which we care about the outcomes of others

bounded willpower

The tendency to place greater weight on present concerns rather than future concerns

cardianl issue perspective

developed by J. Frank Yates, is a psychological framework identifying 10 fundamental, often subconscious, challenges that must be addressed in every decision

framing

The bias to be systematically affected by the way in which information is presented, while holding the objective information constant

heuristics

cognitive (or thinking) strategies that simplify decision making by using mental short-cuts

introspection illusion

one cause of bias blindspot that occurs because people often rely on their thoughts and feelings when evaluating their personal biases

J. Frank Yates

professor, lecturer, researcher, diversity advocate, and pioneer of decision-making science

naive realism

the false belief that one’s perception reflects the true state of the world

overconfidence

The bias to have greater confidence in your judgment than is warranted based on a rational assessment.

system 1

Our intuitive decision-making system, which is typically fast, automatic, effortless, implicit, and emotional.

system 2

Our more deliberative decision-making system, which is slower, conscious, effortful, explicit, and logical

Tversky and Kahneman

produced their own Nobel Prize–winning research, which provided critical information about specific systematic and predictable biases, or mistakes, that influence judgment