rational decision making
→ Traditional economic theory that people are rational actors
rational choice/public choice
→ people act based on their self interest
what does it mean to be a rational actor?
→ You are able to rank, order your preferences based on the expected utility of each
...
SPEA-V 185 Exam 2 Questions and
Answers 2024/2025
rational decision making
→ Traditional economic theory that people are rational actors
rational choice/public choice
→ people act based on their self interest
what does it mean to be a rational actor?
→ You are able to rank, order your preferences based on the expected utility of each
option.
→ These rank ordered preferences are stable and transitive.
→ Having perfect information about all alternative possibilities.
→ Maximize your utility
pure rationality
→ requires person to have complete information and to process this information in a
timely manner.
Bounded rationality
→ people do not have the capacity to be perfectly rational
→ the intuitive and emotionally based way that people react automatically. (thinking fast)
(more common) (used the most)
system 2
→ the deliberate, controlled, conscious, and slower way of thinking
prospect theory
→ people approach outcomes by assessing risk of the loss rather than possibility of the
gain
Satisfising
→ rather than trying to make the best decision possible, people try and make a decision
that is good enough.
Decoy effects
→ refer to situation where the selection can be influenced by including a clearly inferior
version of one of the choices
choice blindness
→ people will come up with reasons after the fact to make it seem like their decision was
based on some logical reason.
→ People defending a choice even though it was not the choice they made.
confirmation bias
→ people not only seek out information that supports their existing opinion, but they also
tend to ignore or discount information that challenges their belief.
→ Policymaking characterize by a series of decisions each instituting modest change
parallel processing
→ Dealing with several decisions simultaneously
Serial processing
→ Dealing with 1 problem at a time
→ (Humans can only engage in serial processing despite continued efforts to multitask)
Aspects of incrementalism
→ - Less work in looking at other kinds of decisions
→ - Less risk
→ - Consistent with principles of bounded rationality
→ - Politically expedient
→ -not expedient in situations where change is needed quickly
→ -does not answer the call to mass movements effectively
Punctuated equilibrium
→ Happens when attention of key decision makers becomes focused on a single issue or
problem
→ Generally happens when an issue hits a breaking point and attention shifts and
becomes proportionately focused
→ Some issues can't be solved incrementally
ONe important insight into group dynamics of decision-making
→ Inherent need for humans to be liked and positively viewed by peers.
→ Can be destructive in situations like peer pressure.
Ashe Confirmatory Experiment
1|Page| GradeA+ | 2 0 0 2 5
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper TestTrackers. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €12,12. Je zit daarna nergens aan vast.
