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For example, varied descriptions of the same decision problem should not give rise to different decisions, due to the extensionality principle. If judgments are made on the basis of irrelevant information as described, that is called an extensionality violation.
Neglect of probability, the tendency to completely disregard probability when making a decision under uncertainty. [52] Scope neglect or scope insensitivity, the tendency to be insensitive to the size of a problem when evaluating it. For example, being willing to pay as much to save 2,000 children or 20,000 children.
some involve a decision or judgment being affected by irrelevant information (for example the framing effect where the same problem receives different responses depending on how it is described; or the distinction bias where choices presented together have different outcomes than those presented separately), and
The first element to achieve decision quality is framing. Having the appropriate frame ensures the right decision problem is addressed. Quality in framing is achieved when the decision makers have alignment on purpose, perspective, and scope of the decision problem to be solved. It means the right people will work the right problem the right way.
Choice architecture is the design of different ways in which choices can be presented to decision makers, and the impact of that presentation on decision-making. For example, each of the following: the number of choices presented [1] the manner in which attributes are described [2] the presence of a "default" [3] [4] can influence consumer choice.
In mental accounting the framing of a decision reduces from the overall account to a smaller segregated account which can incentivize purchase decisions. An example of this was posed by Thaler where people were more inclined to drive 20 minutes to save $5 on a $15 purchase than on a $125 purchase. [19]
Individuals whose judgments are influenced by outcome bias are seemingly holding decision-makers responsible for events beyond their control. Baron and Hershey (1988) presented subjects with hypothetical situations in order to test this. [2] One such example involved a surgeon deciding whether or not to do a risky surgery on a patient.
An availability heuristic is a mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision. As follows, people tend to use a readily available fact to base their beliefs on a comparably distant concept.