PSYC 1020H Lecture Notes - Lecture 8: Bounded Rationality, Availability Heuristic, Conjunction Fallacy

• School: Trent University
• Department: Psychology
• Course: PSYC 1020H
• Professor: Kateryna Keefer

Document Summary

Heuristics: fast 7 efficient decision-making strategies, rules of thumb, assumptions, reasonably good, but can also lead to errors. Judgements & decision-making: evaluating alternatives and making choices. Theories of decision making: rational, how we ought to make decisions, rational, too idealized, descriptive, how we actually make decisions, heuristics, error & biases. Rational choice theory: evaluate the likelihood & value of each alternative. Choose one with the highest expected gain: expected gain = probability x value. What would you choose: 10% chance of getting . 10 x = : 20% chance of getting ,000. In reality, probability and value are uncertain: rely on heuristics to estimate both. Errors in probability judgements: availability heuristic, representativeness heuristic, conjunction fallacy. Availability heuristic: judging probability of an event based on now easy examples come to mind (i. e. , available in memory, assume: easier to imagine more frequently/likely, but: may be just more familiar, vivid, recent.