BU288 Lecture Notes - Lecture 8: Daniel Kahneman, Sunk Costs, Group Polarization
Document Summary
Decision making: the process of developing a commitment to some course of action, process, commitment, course of action based on a choice among alternatives. Group polarization: group discussions polarizes/exaggerates initial position of group members, group members" initial beliefs are selectively reinforced, risky shift, conservative shift. Human decision making: decision theorists have recognized that although we sometime think we are perfectly rational decision-makers or strive to be there are usually limits to our rationality. In fact, perfect rationality can come across as strange. Structure of decision making: well structured, probabilities clear, lots of information, clear how to get to a decision. Ill structured: probabilities not clear, do not know much information, unclear how to get to a decision. Decision making biases: one biggest problem in carter racing is our tendency to overlook the missing data . Decision-based evidence making : make a decision, then find evidence to support your decision.
