Summary
Summary Consumer Decision Making (ECH-31306)
- Course
- Institution
Summary Consumer Decision Making (ECH-31306). Concludes lecture slides and book. TIP: download also the summary of the articles.
[Show more]
1 review
By: wesleyvanvelzen • 6 year ago
Seller
Followevichris
Reviews received
Content preview
Summary ECH-31306Lecture 1 – views on decision making
Economics and psychology are as water and fire.
Economics Psychology
Assumptions about human behaviour Research about human behaviour
Aggregated behaviour Individual behaviour
Normative theory Descriptive theory
Deviation (anomalies) from theory ‘Separate theories’ (occasional theories) for
deviations
Assumptions of economic theory:
- Complete information about choice alternatives (market transparency)
- Correct calculation of utility of combinations
- Individualism, self-interest
- Knowledge about short-term and long-term utility
- Stable preferences
- Maximisation or optimisation of utility
- No role for emotion
Decisions are important since resources are limited. To adjust to one’s environment and
since they may have a large influence on both an individual’s happiness and society. A
decision is:
- Ordering a meal in a restaurant
- Starting a consultancy firm
- Not quitting smoking
- Solving a math problem
- Inventing a new type of bicycle
- Grading an exam
- Innovation
“.. a decision is defined as a movement in an ongoing process of evaluating alternatives for
meeting an objective, at which expectations about a particular course of action impel the
decision maker to select that course of action most likely to result in attaining the objective.”
Important distinctions:
- What is the difference between judgement and decision-making?
- What is the difference between problem-solving and decision-making?
- What is the difference between a decision and decision-making?
Judgement: the cognitive part of decision making. “A judgement requires a choice to become
a decision”.
Problem-solving: “problem-solving may or may not require action”.
Decision: one moment in a larger process of decision-making. When alternative are
evaluated and lead to selection of one alternative. In a decision there is an aim for a specific
goal and eventually it will lead to action.
Decision making: is the whole process of making a decision. This process contains different
steps.
1. Gathering information:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller evichris. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.59. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now