CGSC 1001 Lecture Notes - Lecture 11: Time Preference, Omission Bias, Risk Compensation
2 Aug 2016
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Bias could have helped us survive in the past. Ex: when looking at the menu of restaurant you will define what is expensive and what is cheap by comparing it to others on same menu. Restaurant could add very expensive dish in order to make others cheaper. Tendency to believe the same thing as others around us because disagreement in social group creates tension. We aren"t good at putting objective value on thing. We value things based on what"s around it or our use for it later. Notice more frequently when media espouses views against yours. Many people who live in dire conditions often suffer from temporal discounting because the future looks so uncertain. Not necessarily irrational to have discounting, but past a certain level it is. People underestimate how long things will take and assume they will have lots of time in future. We have some opinion about how good we are.
