PSYC 341 Chapter Notes - Chapter 8: Rag Doll, Hindsight Bias, Representativeness Heuristic
24 Dec 2016
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Behavioral approaches to understanding probability and frequency judgment. Violate of expected utility theory: endowment effect: people overvalue possessions relative to what people will pay for them. Buying price will be small compared to selling price will be large. If you give away your winning ticket, not knowing that its winning, then you feel more remorse later on than if the other person just won without trading your ticket. Violations of probability theory: availability heuristic. Frequency and probability metrics are replaced by retrieval processes. Events that are easy to retrieve from memory are viewed as more frequent or more probable: representativeness heuristic. Formal use of probability theory is replaced by cognitive mechanisms used in similarity-based categorization. Events are viewed as more probable if they are similar to past exemplars. Probability of co-occurring events can never be higher than the probability of the two events happening alone. Feminist, bank teller, or feminist/bank teller: hindsight bias.
