PSYC100 Study Guide - Midterm Guide: Expected Utility Hypothesis, Functional Fixedness, Availability Heuristic

• School: University of Delaware
• Department: Psychology
• Course: PSYC100
• Professor: Medina Ph D, Jared Kuhlman, David M

Document Summary

08 heuristics in decision making pages 316-321: what is expected utility theory ? . What do each predict: e xpected utility theory: asses you options in terms of what you expect to gain. Individual differences picking the most desirable- most value to you. 1- decide what loses you can not take. Descriptive decision theory - decision making based on the heuristics people use to make decisions. Thinking about the problems that are involved with a possible loss: prospect theory: use various heuristics in two stages ii. iii. i. ii. iii. iv. Do people act: understand each of the biases/heuristics that affect our judgments and decisions: , framing, anchoring, affective forecasting, the availability heuristic, and the representativeness heuristic. How can we overcome these biases? c: heuristics: shortcuts that we use often to reduce the amount of effort/thinking b. involved in making decisions.