COMM 292 Chapter Notes - Chapter 12: Risk Aversion, Bounded Rationality, Confirmation Bias
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COMM 292 Full Course Notes
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Chapter 12 decision making, creativity, and ethics. Rational refers to choices that are consistent & value-maximizing within specified constraints. Describes how individuals should behave in order to maximize some outcome. Model assumes that the decision maker : has complete information problem is clear, is able to identify all options in an unbiased manner, chooses the option with the highest utility. Limitations on a person"s ability to interpret, process, and act on information. Satisficing to provide a solution both satisfactory & sufficient: the first acceptable solution we encounter rather than the optimal one. An unconscious process created out of a person"s many experiences. Not rational and not necessarily always wrong. Believing too much in our own ability to make good decisions. Tendency to fixate on initial info as the basis for making subsequent judgments. Tendency to seek out info that reaffirms our decision & discounting info that contradicts. Basing judgments on info that is readily available rather than complete data.
