Chapter 9 Entrepreneurship

What are heuristics?

Mental shortcuts used to make decisions quickly.

What are benefits of heuristics?

Speed and usefulness in uncertain situations.

What is instant gratification bias?

Choosing immediate rewards over long-term benefits.

What is overconfidence bias?

Overestimating one’s abilities or knowledge.

What is optimism bias?

Believing outcomes will be more positive than reality.

What is confirmation bias?

Seeking information that supports existing beliefs.

What is selective perception bias?

Interpreting information based on personal views.

What is sunk cost bias?

Continuing due to past investment.

What is escalation of commitment?

Increasing commitment to a failing decision.

What is anchoring bias?

Relying too heavily on initial information.

What is framing bias?

Being influenced by how information is presented.

What is representativeness bias?

Judging based on stereotypes or patterns.

What is evidence-based decision making?

Using the best available data to make decisions.