ARBUS202 Lecture Notes - Lecture 1: Stanislav Petrov, Harm Reduction, Bias Blind Spot

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS202
• Professor: Gregory Andres

Document Summary

Instructor plays an auction game where he is auctioning off a . 00 bill. The second highest bidder has to pay him and will receive nothing. The moral of the game is that in the end you are stupid to bid and you will most likely lose money in the end and not get the bill for a . The method is known as irrational escalation, we will pay stupid amounts of money. One professor had a student bid on the upwards of for a bill. Distinguish between good outcomes and good decisions. It is a bad decision to join in the bid in the first place. Even if you get a good outcome in the end, it does not mean the decisions that got you there were good. According to economists we are not always rational beings. In business it is often referred to as the irrational consumer.