GMS 200 Lecture Notes - Lecture 3: Transept, Bounded Rationality, Rationality

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

Heuristics: refers to experience-based techniques for problem solving, learning, and discovery that give a solution. 100 mit students were asked: option 1 16, option 2 0, option 3 84. Then eliminated option 3, and changed it into option 2: option 1 68, option 2 32, more chose 1. Decoy effect: shows that information can be tweaked to create biases in order to sway ppl"s decision. Gms 200 global management: uc berkeley in fall of 1973. 44% of men and 35% of women were admitted. The quality of the applicants was the same. Stock predictions: one stock broker provides monthly predictions that correctly predicted 7 of the 9 downturns in the economy over the past 3 years. Can experts predict better: rat was placed in t-shaped maze. If there is 1 in 3 chance of x and a 1 in 4 chance of y: what is the probability of both x and y occurring.