ARBUS202 Final: Exam Notes Based off Important Lecture Content
16 Jan 2019
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Conformation bias: focus on the evidence that proves we are right. We ignore evidence that suggests we"re wrong: we like to look at things that make us feel like we"re right and not look at the things that can prove we"re wrong. Example was crime rate dropping, but i have a view that crime rate is the same. Bias blindspot: even though we are susceptible to the same type of mistake, we think we are the exception, car moving into right lane. Does all the steps but forgets to check blind spot. First fundamental theorem of welfare economics: allow people to compete for resources and they will trade as long as it is to their benefit, this is like catan. We trade our extra resources to build roads, houses etc. In the end, resources will be distributed efficiently in the competitive environment.
