Economics/psychology

Economics/psychological manipulation

Experimental manipulation

to learn what difference something makes in peoples behavior – vary that one thing between subjects 

Randomization

random assignment of subjects ensures that there are no inherent differences between the groups answering the different questions

goal driven behavior

what make people happy at a moment in time, how people make tradeoffs with time and risk, what people believe about the environment

1st componenet of decision-making

the utility function, losses and risks, loss aversion and social preferences

loss aversion

dislike losses more than they like equal sized gains

reference-dependent preferences

people evaluate outcomes not only on an absolute scale but also on relevant reference points, people hate falling short and will take risks and work hard to avoid

2nd component of decision-making

decision-making overtime, conflict between short-term desires and long-term goals, whether and how people predict their own future utility and behaviour

3rd component of decision-mkaing

probability judgements, mistakes in objective probability judgements, heuristics and biases

heuristics

when people faced with a congnatively demanding task they respond by using a quick intuitive shortcut