Term
| 4 things that a decision entails |
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Definition
| goal, at least 2 ways to satisfy the goal, evaluation of options, selection of 1 option |
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| what are the decision tree ABC's? |
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Definition
| Alternatives, Belief, Consequences |
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Term
| _____ _____ Model says: all options are evaluated relative to one another through 3 steps. |
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Definition
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| Step 1 of Expected Utility Model |
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Definition
| evaluate each option & multiply desirability of each outcome by the probability of it occurring. |
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| Step 2 of Expected Utility Model |
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Definition
| create a summary evaluation of each alternative |
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| Step 3 of Expected Utility Model |
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Definition
| choose the course of action with the highest expected utility. |
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| ____ _____ is the desirability of a particular outcome, given the probability that the outcome will occur. |
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Term
| _____&_____ conducted behavior research that focused on gambling. |
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Term
| people are risk-averse when ____ is emphasized. |
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| people are risk-seeking when ____ is emphasized |
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Definition
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Term
| The Expected Utility Curve says that we tend to _____ lower probability items and _____ higher probability items. |
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Definition
| overestimate; underestimate |
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Term
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Definition
| Principle of Transistivity |
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Term
| If you like coffee flavored ice cream better than vanilla flavored ice cream, and you like vanilla flavored ice cream better than you like chocolate flavored ice cream, then you must like coffee flavored ice cream better than chocolate flavored ice cream. This is explained by ____ _ ____. |
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Definition
| Principle of Transistivity |
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Term
| the same amount of loss hurts ___ than the same amount of gain brings joy |
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Definition
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Term
| ___ ____ says 2 ways of asking the same question should produce the same answer. |
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| ____ ____ explains how the wording of the problem influences how the choice is made. |
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Definition
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Term
| when you pick based on payoff, you're making an ____ gamble. |
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Definition
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Term
| when you pick based on probability, you're making an ____ gamble. |
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Definition
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Term
| In real life, your choices are based on expected utility values only when ____. |
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Definition
| probabilities are very different |
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Term
| ____ ____ says we choose certainty over ambiguity even when the result is an inconsistent pattern of choices. |
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Definition
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Term
| ____ ____ says adding an identical event to each alternative has the effect of changing the preference of a decision maker |
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Definition
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Term
| ____ ____ says revised preferences between identical outcomes depending on time. |
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Term
| "Would you rather get $5 today or $10 in two weeks?" Your answer to this question could be explained by _____ _____ |
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Definition
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Term
| When talking about Dynamic Inconsistency... if you opt for immediate gratification _____ is generating this response. |
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Definition
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Term
| When talking about Dynamic Inconsistency... opting for delayed gratification is a decision based on ____. |
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Definition
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Term
| 4 areas of the brain involved with immediate rewards |
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Definition
| ventral striatum, medial orbitofrontal cortex, medial prefrontal cortex, posterior cingulate |
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Term
| 4 areas of the brain involved in picking between rewards |
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Definition
| right dorsolateral prefrontal cortex, right ventrolateral prefrontal cortex, right lateral orbitofrontal cortex, intraparietal cortex |
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Term
| the expected utility model is concerned with _____ decision making. |
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Definition
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Term
| rationality depends on ___, __ ___, and ___ ____ ___. |
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Definition
| attention, working memory, executive control processes |
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Term
| ___ ___ says we are as rational as we can be, given cognitive limitations on the amount of info we can process. |
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Definition
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Term
| ____ is when you pick the option that is "good enough" to meet the goal but not necessarily the best of ALL possibilities. |
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| ____ __ ___ = most important attribute -> second most important attribute (evaluate, reject, select...evaluate, reject, attribute) |
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Definition
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Term
| ____ are simple and efficient rules of thumb that work well in most circumstances; prone to bias and error; don't require a lot of effort |
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Definition
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Term
| ____ heuristic = making judgments about the frequency or likelihood of an event based on how easily instances come to mind; we give importance to things that are easiest to recall; factors at work include personal relevance, recency in memory, vividness and media. |
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Definition
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Term
| _____ heuristic = judge probability of an event based on how it matches a prototype; important in social settings; can lead to errors |
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Definition
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Term
| Gambler's Fallacy is a ______ heuristic |
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Definition
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Term
| _______ heuristic = people are influenced by an initial anchor value, however the anchor value may be unreliable, irrelevant, and adjustment if often insufficient. |
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Definition
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______ heuristic = which prediction would be more accurate?
a)predicting a boy's height from his father's height
b)predicting a father's height from a son's height
confidence in a conclusion is higher is you can construct a causal scenario that leads from one to the other. |
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Definition
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| ____ heuristic explains why people like reasons for behavior |
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Definition
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| ____ heuristic explains how in a trial by jury, guilt or innocence often rests on the juror's ease of constructing a coherent story from evidence |
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Definition
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Term
| when talking about judgment heuristics, calculations and frequency estimates happen in which area of the brain? |
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Definition
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Term
| when talking about judgement heuristics, which area of the brain is involved in approximate estimates? |
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Definition
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Term
| "would you pay $3.75 for a gallon of gas?" and "how much would you be willing to pay for a gallon of gas?" are two ways of asking the same question about preferences. this is an example of ____ ____ |
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Definition
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Term
| When people win the lottery and choose to get all the cash now rather than receive payments over a span of time, this is an example of ______ ______ _____. |
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Definition
| dynamic inconsistency principle |
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Term
| You have $1000 to invest and choose to put it into a new technology company that you think is going to make it big. You are displaying ___ ____ behavior. |
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Definition
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Term
| A ____ is based on the value of each option to an individual and the likely outcome of each option. |
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Definition
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Term
| According to the ___ ___ model, the expected utility is equal to the sum of the probability times the utility of each possible outcome. |
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Definition
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