Judgement & Decision-Making

Question 1

Availability Bias

Answer 1

items that are more readily available in memory are judged as having occurred more frequently

Question 2

Framing Effects

Answer 2

changing how an issue is presented can change people’s decisions

Question 3

Loss Aversion

Answer 3

people tend to want to avoid losses more than they want to achieve gains

Question 4

Sunk-Cost Fallacy

Answer 4

people will frame a decision based on what they’ve already invested

Question 5

Anchoring

Answer 5

the bias to be affected by an initial anchor, even if the anchor is arbitrary, and to insufficiently adjust our judgements away from that anchor
e.g. sales (“70% off!), or including the original price