PSY30400 Midterm: Take Home Points Exam 3 Part 9
Take Home Points Exam 3
decisions:
• risk averse
o tendency to avoid taking risks
o believe that particular loss will have a greater impact than a gain of the same
size
▪ very disturbing to lose $100 but only slightly pleasant to win $100
▪ people overestimate negative feelings not taking into account coping
mechanisms that deal with adversity
o inability to correctly predict the emotional outcome of a decision leads to
inefficient decision making
• opt in or out
o opt in
▪ requires an active step (28% organ donors when 85% approve)
o opt out
▪ everyone is one unless requests not to be
• status quo
o tendency to do nothing when faced with making a decision
▪ (no opt in organ donation)
o tendency to stay with the status quo
▪ New Jersey vs. Pennsylvania car insurance
• bystander effect
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