regression to mean-Linda eg iii. Anchoring and Adjustment –pay for beer, engineer’s salary iv. Framing –loss and gain b. Motivational Biases i. Confirmation Bias ii. Hindsight Bias iii. Escalation of Commitment iv. Positive (ego-centric) Illusions c. Emotion-related Biases i. Priming 6. The base rate fallacy, also called base rate neglect or base rate bias, is an error that occurs when the conditional probability of some hypothesis H given some evidence E is assessed without taking into account
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BEHAVIORAL FIANCNE AND WEALTH MANAGEMENT AUTHOR : MICHAEL M. POMPiaN BEHAVIORAL FIANCNE AND WEALTH MANAGEMENT AUTHOR : MICHAEL M. POMPiaN BOOK REVIEW OF : BOOK REVIEW OF : PREPARED BY : ASHISH SHARMA PREPARED BY : ASHISH SHARMA 2014 2014 Behavioral Finance and Wealth Management Author Information “Michael M. Pompian, CFA, CFP, is a partner at Mercer Investment Consulting, a firm serving institutional and private wealth clients
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MGMT 3720 Assignment #2 This is a case about an experienced ski instructor named Miranda. She seems to have developed a perception of her new boss is that he might be sexist. She feels that he might be overlooking more qualified female instructors for men. Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. (Robbins & Judge, 2013) I will be discussing Miranda’s perception of her boss and the factors that
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conflict and ways to negotiate to turn people or see the other side of the picture. Goes along with real life situations where there are people that hold certain biases and this movie displays them well. One of the biases is confirmation bias, which restricts new information. This Bias is seem early in the beginning of the film. For example when Mr. Fonda introduced the notion of the murder knife not being as rare as the prosecutor showed. One of the juror's rejected the new information because of the
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Managerial Decision Making (Bazerman, 2009), the two biases that prolonged and strengthened the housing crisis in a significant manner can be seen in the “Ease of recall” bias stemming from the “Availability Heuristic,” as well as the “Anchoring” bias coming from the “Confirmation Heuristic.” Bazerman and Moore define the “ease of recall” bias as one where “individuals judge events that are more easily recalled from memory, based on vividness or recency, to be more numerous than events of equal frequency
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while reading was that negative thinking will produce a negative effect. A concept can be used to help understand the main purpose of something or to help explain it. An example of a concept in the story that stood out was the hindsight bias. The hindsight bias is the tendency to exaggerate after learning an outcome. On page 4 in the beginning of the third paragraph, Givoni was asked to move to a different room due to a mother needing to be near her children and he graciously agreed. After agreeing
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different from that of previous research. It focuses on anchoring bias, a topic that has been characterized by Hirshleifer (2001) as an important part of “dynamic psychology-based assetpricing theory in its infancy” (p. 1535). “Anchoring” describes the fact that, in forming numerical estimates of uncertain quantities, adjustments in assessments away from some initial value are often insufficient. One of the first studies of this cognitive bias is the seminal experiment by Kahneman and Tversky (1974)
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present novel evidence on the prevalence of the common behavioral decision-making errors of present-bias, overoptimism, and information salience among 155 Ugandan HIV patients, and analyze their association with subsequent medication adherence. 36 % of study participants are classified as present-biased, 21 % as overoptimistic, and 34 % as having salient HIV information. Patients displaying present-bias were 13 % points (p = 0.006) less likely to have adherence rates above 90 %, overoptimistic clients
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Week 6 Lecture 1: Decision Making Individuals Definition of decision making: it is a process of making a choice among several action alternatives. It involves a commitment of resources to some course of action. Assumptions of rational decision making model: Problem clarity: clearly defined and unambiguous Know options: identify all relevant criteria and viable alternatives in an unbiased manner Clear preferences: the criteria and alternatives can be ranked and weighted. Constant preferences:
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In Laura Maria Agustin’s Sex at the Margins, power-knowledge is exercised over individuals by way of controlling institutions and is carried out through such things as punishment, education, and protection. This utilization of power-knowledge as a method to understand “the cult of domesticity and attached ideas of moral reclamation and regulation” was interesting, especially with its application to sex work (Agustin 99). A startling example that was illustrated in “Rise of the Social” and thoroughly
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