lecture 8: frames, choices, and human rationality

What are the two standards of rationality described in the notes?

Sensitivity to relevant information and Consistency.

What does 'Sensitivity to relevant information' mean in the context of rationality?

The ability to make judgments and decisions that are sensitive to probabilities of critical events and the usefulness of evidence.

In decision making, what does 'Consistency' refer to?

In equivalent situations, given the same information, people should make equivalent decisions.

What do Tversky & Kahneman's studies involve in the context of framing?

They analyze decisions made between different programs to combat a flu virus, highlighting how framing affects choices.

How do people tend to choose between Program A and Program B according to framing?

Majority (72%) choose Program A, which guarantees that 200 people will be saved, over Program B, which presents uncertain outcomes.

What is the preference reversal observed in Tversky & Kahneman's studies?

People prefer the certain option when framed in 'lives saved' and the uncertain option when framed in 'lives lost'.

What is an example of framing in product evaluation given by Levin & Gaeth?

Participants evaluated ground beef labeled as either '75% lean' or '25% fat'.

When is the phenomenon of 'Information Leakage' relevant?

When speakers choose a frame that implicitly communicates information about their reference point without explicitly stating it.

What do Grice’s maxims relate to in conversational implicature?

They are principles that guide how people make inferences in conversations, emphasizing relevance, conciseness, honesty, and clarity.

In rational decision-making, what should logically equivalent situations lead to?

Equivalent choices, decisions, and evaluations.

What implication can be drawn from choosing a frame that highlights an 'increasing' attribute?

It suggests a positive evaluation relative to an unstated reference point.

According to Levin & Gaeth, what is the implication of labeling meat as '75% lean'?

It implies that the amount of lean meat has increased relative to an unstated reference point.

In contrast, what does '25% fat' imply according to the same study?

It implies that the amount of fat has increased relative to an unstated reference point.

How do framing effects complicate the perception of rationality?

Changing judgment based on frame shows rationality but unknown reference points complicate understanding.