PR 605 Lecture Notes - Lecture 18: Advertising, Confirmation Bias, Selective Perception

• School: Ball State University
• Department: Public Relations
• Course: PR 605
• Professor: Ingrid Cummings

Document Summary

Normally, we are more confident, even overly confident about our personal abilities and other people"s abilities. Actually, were normally not aware of this bias that we have. People who have intellectual and interpersonal abilities are weakest and most likely to overestimate their own ability and performance. The overconfidence of an investor operates in a lot of different ways. Investors and novice investors overestimate their processing information skills and the information"s quality. Majority of investors will only do as well or a little better than the market. Anchoring bias is the tendency to fixate on the information that comes initially and fail to adjust for information that comes after in an adequate manner. The mind seems to give disproportionate amounts of emphasis to the information that it receives first in employment interviews. Anchors are used a lot by people in jobs where they value persuasion skills and find them important. Any time a negotiation happens, anchoring happens as well.