MGT 125 Lecture Notes - Lecture 4: Fundamental Attribution Error, Bounded Rationality, Decision-Making
8 May 2020
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Document Summary
A theory used to create a mathematical model to aid the process of decision making. Create some examples for yourself based on the titan cosmetics example we did in class. Think about the creative idea example we discussed in class. The idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. Fundamental attribution error: when things go well we tend to credit ourselves for the achievement. Underestimate influence of external factors: over estimate influence of dispositional factors. Internal causes pertaining to our own successes and external causes pertaining to our own failures. Availability: the tendency to base judgements on information readily available. Events that evoke emotions, are particularly vivid, or are more recent tend to be more available in our memory leading us to overestimate the chances of unlikely events such as an airplane crash.
