BUAD 304 Lecture Notes - Lecture 2: Rationality, Availability Heuristic, Bounded Rationality

• School: USC
• Department: Business Administration
• Course: BUAD 304
• Professor: Tolan Jody

Document Summary

Perception: how do we see the world: internal reasons: personality, not working hard enough, external reasons. Gestalt- whole greater than sum of its parts: proximity- objects near each other tend to be grouped together, continuity- when items are grouped together, we tend to integrate them into perceptual wholes (ex. Olympic sign: closure- we perceive objects as whole, even when they are not complete, similarity- when items are similar we group them together. Fundamental attribution error: underestimate the influence of external factors and overestimate the influence of internal factors. For actor, everything but the actor (the situation: we often make self serving attributions (we tend to give ourselves credit if something goes really well) Selective perceptions: we selectively interpret what we see based on our interests, background, experience, and attitudes. Halo effect: global evaluation of a target influences how people evaluate target"s attributes, behaviors, etc. Contrast effect- impressions of things are influenced by things we saw in recent past: ex.