Class Notes (1,100,000)
CA (650,000)
Queen's (10,000)
COMM (700)
Lecture 11

COMM 151 Lecture Notes - Lecture 11: Sunk Costs, Bounded Rationality, Norm (Social)


Department
Commerce
Course Code
COMM 151
Professor
Christopher Miners
Lecture
11

This preview shows half of the first page. to view the full 1 pages of the document.
Review&of&Individual&Decision&Making:
People&who&have&initiated&a&failing&course&of&action&tend&to&escalate&their&
commitment&to&these&situations,&even&though&they&only&continue&making&things&
worse
This&is&because&of:
Self-justification/dissonance&reduction
Failure&to&treat&sunk&costs&as&sunk&costs
Social&norm&of&consistency&in&behaviour
Framing&heuristic,&in&the&domain&of&loss&and&thus&risk&prone
To&prevent:
Change&the&frame
Set&specific&goals&that&must&be&met&before&committing&further&resources
Place&more&emphasis&on&the&decision-making&process&and&less&on&the&
outcome
Rational-economic/perfect&rationality&model
Three&assumptions:&Have&complete&information,&are&logical,&and&only&
consider&economic&gain&as&criterion&for&decision&making
Bounded&rationality&model
Heuristic&information&processing&relies& on&rules&that&simplify&decision-
making,&and&the&three&assumptions&are&not&correct
Lecture'Eleven:'Group'Decision'Making
Wednesday,& February&28,&2018
12:55&PM
You're Reading a Preview

Unlock to view full version