ACCT 200 Lecture Notes - Lecture 1: Availability Heuristic, Representativeness Heuristic, Regression Fallacy

• School: University of Arizona
• Department: Accounting
• Course: ACCT 200
• Professor: Janee Johnson

Document Summary

Automatic system = the component of our minds that is typically uncontrolled, effortless, fast, and unconscious. Reflective system = the component of our minds that is typically controlled, effortful, slow, and conscious. The illusion of memory = our memories are more fallible than we ordinarily expect them to be; and moreover, our feelings about when our memories are more or less likely to be accurate, are highly fallible as well. The illusion of confidence = our combined tendency both (i) to be overconfident in our own judgments, and moreover (ii) to over-rely on other people"s confidence as a signal about how reliable their judgments really are. The dunning-kruger effect = people who are least skilled at a task, suffer from the most overconfidence. The illusion of consensus = the illusion that the best way for a group to use the abilities of its members in solving a problem is to deliberate over the correct answer and arrive at a consensus.