BU288 Lecture Notes - Lecture 3: Rationality, Confirmation Bias, Bounded Rationality
Document Summary
Decision making - the process of developing a commitment to some course of action. Commitment of resources like money or time. Problem - perceived gap between an existing state and a desired state. Well structured problem - a problem for which the existing state is clear, desired state is clear, and how to get from one to the other is obvious. Program - standard way to solve a problem. Group polarization tendency for a group to make decisions that are more extreme than the initial inclination of its members. Conformity behavior in accordance with socially accepted conventions or standards. Asked a group of people which lines are the same length and as he went down the line, regardless of the right answer, people conformed to the norms of the group. As long as there are 3 or more saying another answer, the odd one out will give in.
