GEOLOGY 002 Lecture Notes - Lecture 17: Cognitive Bias, Representativeness Heuristic, Fungibility
Document Summary
Learning goals: how do we judge and make decisions, biases on decision making. Keywords: biases, heuristics, satisficing, expected utility theory, prospect theory, framing, nudging, overconfidence, dual system theory, kahneman. Terms: decision making = mental activities that take place in choosing among alternatives rational = consider all your relevant goals and principles, not just the rst ones that come to mind. Man-who argument = when presented with statistics, we may refute those data with our own observations of, i know a man who . We tend to choose options offering a small but certain gain rather than a larger but uncertain gain. Gps device, calorie app, graphic warnings for cigarettes, nutrition facts. Multiplying the probability of each outcome by the amount of money won or lost for that outcome + summing these values over all possible outcomes. When dealing with possible gains (lives saved), people tend to avoid risks.
