"Cognitive Bias" Essays and Research Papers

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Cognitive Bias

incorporate behavioural finance into their analysis of an investor’s portfolio. The use of behavioural finance concepts will create the following opportunities for HelloWallet. Availability Bias: People will be influenced more by what they can easily retrieve from memory. Availability bias is a human cognitive bias, which causes us to overestimate probabilities of events associated with memorable occurrences. A prime example of this would be plane crashes. Plane crashes are extremely rare; however...

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Bias in Shopping

subject for this essay. A short stroll to a local supermarket (any supermarket witnesses an enormous number of individual decisions) served both as material for a reflection and as an attempt to understand how consumers’ choices can be influenced. Cognitive biases can affect consumers’ choices even when picking products that they need. Or do we really need them? The examples of anchoring and confirmation biases are hereby presented. Anchoring toilet paper prices Similarly to your need to buy food...

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Heuristics and Bias

Running head: Heuristics and Bias Heuristics and Bias Ebony J. Travis American Intercontinental University Professor Walter McCord Decision Making BUS300-0704A-03 October 27, 2007 Volvo: A Consumer’s Choice As an employee of It’s Electric, I have been delegated the assignment of picking a line of automobiles to use as company cars. On the grounds of economy and longevity, I am looking to purchase Volvo’s after some research on Consumer Reports. Through an exclusive fleet program...

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Individual Process and Behavior

affected by two problems: the tendency to make attributions when focusing on another’s behavior, fundamental attribution error; or focusing on one’s own behavior, a self-serving bias. The banking industry exemplifies a unique environment where personal bankers are committed to fundamental attribution error and self-serving bias simultaneously. In this instance the “other” is a bank; where a banker’s efforts are considered in the best interest of the company by meeting or exceeding specified sales goals...

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Power Point

Jim Taylor, cognitive biases are barriers that prevents us from using common sense and cause to engage in distorted, imprecise, and incomplete way of thinking resulting in “perceptual distortion, inaccurate judgments, and illogical interpretations”, also known as poor and sometimes catastrophic decisions. _________________________________________________________________ B. Support-Based on Dr. Jim Taylor’s article, types of cognitive biases are The Bandwagon Effect, The Causation Bias, The Overconfidence...

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Chapter 5 Case Incident “the Nice Trap

prediction. Question 2 What decision making errors can you identify in these predictions. Overconfidence Bias –overly optimistic Anchoring Bias –focus on initial information as a starting point Confirmation Bias – based reaffirms past choices and discount info that contradicts past judgments. Availability Bias -- base their judgments on information readily available to them Representative Bias -- likelihood of an occurrence by drawing analogies and seeing identical situations in which they don’t...

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Investment and Risk Tolerance

that they are in financial distress. Those clients do not have a serious desire and readiness to engage in an assessment of their personal financial health; therefore it will limit HelloWallet’s penetration of this market. This intertwines with cognitive dissonance, where people avoid facing financial reality. Statistics show that a vast majority of people suffers from that. People feel discomfort from receiving information that contradicts beliefs that are entrenched in their personalities. Therefore...

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Decision Making and Sound Business Decision

decision’ reveals any perceptual or decision-making biases? Why or Why not? A: Jeff Rommel’s quote about making a ‘sound business decision’ reveals two main perceptual or decision-making biases. The first decision-making bias is overconfidence bias. The overconfidence bias means that the tendency to overestimate the probability that one’s judgment in arriving at a decision is correct. In Rommel’s decision, it is too confident for Nationwide to think that they have the ability to make the good...

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Cultural Dimensions on Behavior.

Seeing this it can be interpreted that Individualism and aspect of culture influences people during this study to conform less. Sub sequentially influencing the behavior of people. Body Two: • Study: (Kashima and Triandis) – Self Serving Bias and Modesty Bias study • Context: The Participants in this study were derived from Japan and America, in this study these individuals were given pictures of unfamiliar nations and then they were asked to remember the details of these pictures. After the pictures...

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Is Self-Enhancement a Universal Phenomenon?

empirically validated. Heine (2005) argued that pretesting with the students was not crucial and that researchers’ interpretations of the construct should suffice. However, it is crucial to pre-test comparison dimensions since researchers hold confirmation bias. Thereafter, the validation of a construct should not be based on researcher’s opinion alone (Sedikides, Gaertner & Vevea, 2005) but pre-tested with the population sample. To elaborate, when traits like hardworking and dependable were used to represent...

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