COMM 292 Lecture Notes - Lecture 6: Confirmation Bias, Bounded Rationality, Brainstorming
COMM 292 – Decision Making Notes 2016
Key Definitions
Bounded Rationality
(307)
Limitations on a person's ability to interpret, process, and act on
information.
Satisfice (307)
To provide a solution that is both satisfactory and sufficient.
Intuitive Decision
Making (307)
Nonconscious decision-making process created out of a person's many
experiences/emotions.
The Rational Model
1. Define the problem
2. Identify criteria
3. Allocate weights to the criteria
4. Develop alternatives
5. Evaluate alternatives
6. Select best alternative
Assumptions of the Model
• Problem clarity; clear and unambiguous
• Known options; all relevant criteria and workable alternatives are identified
• Constant preferences; criteria and weight assigned to them are stable
• No time or cost constraints
• Maximum payoff; alternative that yields the highest perceived value is chosen
Judgment Shortcuts
To minimize effort, people tend to rely on experience, impulses, intuition and convenient methods.
In many instances, these shortcuts are helpful, but they can lead to distortions of rationality.
Overconfidence
Bias
Error in judgment that arises from being far too optimistic about one's own
performance.
Overconfidence usually occurs when workers are considering issues outside
their area of expertise.
Anchoring Bias
Tendency to fixate on initial information and fail to adequately adjust for
subsequent information
For instance, your answer typically answers the employer's offer when you are
negotiating for a higher salary.
Confirmation Bias
Tendency to seek out information that reaffirms past choices and to discount
information that contradicts past judgments
We tend to give too much weight to supporting info and too little to
contradictory information
Availability Bias
Tendency for people to base their judgments on information that is readily
available to them rather than on complete data.
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COMM 292 Full Course Notes
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Document Summary
Limitations on a person"s ability to interpret, process, and act on information. To provide a solution that is both satisfactory and sufficient. Nonconscious decision-making process created out of a person"s many experiences/emotions. Identify criteria: define the problem, allocate weights to the criteria, develop alternatives, evaluate alternatives, select best alternative. To minimize effort, people tend to rely on experience, impulses, intuition and convenient methods. In many instances, these shortcuts are helpful, but they can lead to distortions of rationality. Error in judgment that arises from being far too optimistic about one"s own performance. Overconfidence usually occurs when workers are considering issues outside their area of expertise. Tendency to fixate on initial information and fail to adequately adjust for subsequent information. For instance, your answer typically answers the employer"s offer when you are negotiating for a higher salary. Confirmation bias tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments.
