BU288 Lecture Notes - Lecture 10: Impression Management, Homicide, Loss Aversion
Document Summary
One biggest problem in carter racing is our tendency to overlook the. Decision-based evidence making: you select evidence that supports the decision you already made. Evidence-based decision making: making a decision without a preconceived decision. Confirmation bias: you try to confirm what you had already decided, so you overlook any evidence that goes against your decision. Groupthink: nobody challenges the decision because everyone already agrees. Framing effects: we make riskier decisions in the face of potential losses compared to potential gains. Escalation of commitment: we tend to invest additional resources in an apparently failing course of action, we often continue on with a failing course of action because: Hate to admit we"ve made a mistake. Hope that we can recoup our losses. Parallels between carter racing and nasa launch: budget issues, media attention, routine and safe vehicle, record of 24 successful launches.
