Framing by yurtgc548

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									         Cognitive Heuristics
 Rules of thumb
 “Simple rules in the mind's adaptive toolbox
  for making decisions with realistic mental
  resources.”
 Cognitive Heuristics as Frames- Ways of
  seeing the world or problems
         Troublesome Cognitive
           Heuristics Frames
   Troublesome in the sense that accepted or
    unchallenged they may lead to less than
    optimal results.
         Troublesome Cognitive
           Heuristics Frames
   Risk attitudes
    – Risk neutral
    – Risk adverse
    – Risk seeking
   Often people tend to have risk attitudes that
    are context dependent
        Troublesome Cognitive
          Heuristics Frames
   Anchoring
    – Anchors are often arbitrary
    – People tend to make insufficient adjustments
      from the anchor
        Troublesome Cognitive
          Heuristics Frames
   Overconfidence
    – Belief and confidence in one’s own judgment
      or factual knowledge
    – Often is unwarranted and it should be
      examined.
        Troublesome Cognitive
          Heuristics Frames
   Availability of Information
    – Bias in how one pays attention to information
    – Reoccurring patterns of how one acquires
      information.
       Troublesome Cognitive
         Heuristics Frames
   Winners Curse

								
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