Eman Test 2

The process that prevents us from noticing useful, readily observable data that would be relevant to our decisions

To cope with information overload

Not seeing something because you aren't looking for it

Ex. Invisible gorilla

Failing to notice a significant change; can be because change happens gradually

Ex. Boiling frog

The exaggerated importance of a subset of relevant information and neglect of other available information

Ex. Challenger disaster

Inappropriate attention occurs when an alternative is offered that is obviously not the right one

Ex. Weekend in Paris, Rome, or Rome without free coffee

Groups tend to discuss and emphasize shared information and tend to ignore or deemphasize unshared information

Three doors, one proven to be empty, switch from original choice or stay (should switch)

Demonstrates how naive misconceptions of probability lead to irrational choices

• Misperception of impact of deadlines on negotiations
• System neglect
• Impact of third parties

Tendency to overpay because of failure to accurately consider perspectives of other parties

Ex. Auctions

Alternative wordings of the same information that significantly alter decisions despite no objective difference in the actual information

Ex. At risk students for dropping out

• Gain frame: certain option
• Loss frame: risk-seeking mode

Reflect different preference patterns; isolated decisions tend to promote inconsistent preference patterns compared to combination decisions

Providing certainty has a greater influence on our decisions than making the same numerical change in probability with other values

A certain loss that is generally accepted as part of a decision process

The utility to you of whatever product or service you acquire

Ex. New phone vs. old phone

The perceived quality of the deal relative to what you think the item should cost

Ex. Beer at rundown store vs. at a fancy bar

When there is a premium attached to the value of an item only because someone owned it before

Mentally maintaining different categories of expenses or income and we may tend to use different decision rules for different accounts


Ex. Trip to Europe

• Multiple smaller losses hurt more than than one larger loss.
• Multiple smaller gains are appreciated more than one larger gain.

Tendency to choose to not do anything that would harm a situation

Ex. Vaccinations

Tendency to act to prevent harm due to commission while tolerating harms due to omission

Tendency to act to preserve the status quo, because losses associated with changing things tend to be given more weight than the gains from the changes

Actions are regretted more in the short term but omissions are regretted more in the long term

• Rebates cause you to save more
• Bonuses cause you to spend more

Want option dominates one-at-a-time processes while should option dominates joint evaluations

Evaluation of hard to judge aspects are easier with a reference comparison so the difficult attribute carries less weight in joint evaluations

Where no amount of any "good" ever seems to be permanently satisfactory - we adapt to our increased wealth, take it for granted, and soon desire more