MGMD02H3 Study Guide - Midterm Guide: Soltyrei, Confidence Interval, Sports Illustrated
Document Summary
People are boundedly rational imperfect processor, inconsistent, emotional, poorly calibrated; people often need help to make good decisions. People are boundedly willful error prone, focuses on the present, context driven. Factors frequency/recency, easy to imagine, vividness, salience/noticable. Belief that a member of a given category ought to resemble the category prototype, and that the effect ought to resemble the cause that produced it. Believed to be informative signaling that the true answer is close by. Even when uninformative (last 4# sin) still creates bias and affects judgment. Difficult to spot and therefore hard to correct: price heuristic human tendency to believe that price is a signal or indicator of quality. Restaurants know that people will not go for the cheapest wine and go for the. Brand-name heuristics: graphology shown that people"s hand writing can reveal certain things about their personality/character (i. e. , neat writing supposedly identifies that a person follows rules)
