Psychology 2135A/B Lecture Notes - Lecture 19: Ultimatum Game, Modus Tollens, Neuroeconomics

• School: Western University
• Department: Psychology
• Course: Psychology 2135A/B
• Professor: John Campbell

Document Summary

Law of large numbers: the larger the sample, the closer the statistic will be to the true value. Law of averages: a fallacy based on the assumption that events of one kind are always balanced by events of another kind. Gambler"s fallacy: the mistaken belief that an event that hasn"t occurred on several independent trials is more likely to happen on future trials. The law of small numbers: the mistaken belief that a small sample should be representative of the population from which it is drawn. Representativeness heuristic: making inferences on the assumption that small samples resemble one another and the population from which they are drawn. Loss frame: people become risk prone (more willing to take a risk to avoid loss) People evaluate outcomes as changes from a reference point. Depending on how their current state is described, they perceive certain outcomes as gains or losses. The description is therefore said to frame the decision.