MAN 320F Lecture Notes - Lecture 20: Bounded Rationality, Confirmation Bias, Group Dynamics
Document Summary
Weber is a great worker, but tells you he shot his neighbor"s dog because it was on his property. Seek the first alternative that solves the problem. The limited information processing capability of humans makes it impossible to understand all the information necessary to optimize. So people seek solutions that are satisfactory and sufficient, rather than optimal. Anchoring bias -using early information to make all subsequent decisions. Availability bias - only using readily available information confirmation bias - only using information that will support out decision, ignore everything else representative bias - look at past events to predict what will happen in the future. In spite of negative information, commitment still increases. Tendency to continue to commit resources toa failing course of action. A lot of time money, etc spent on a project, so its hard to jump ship. Risk, time constraints, jobs are all so different. Consequences - full description of consequences is hard to enumerate due to uncertainty.
