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Behavioural economics > Introduction > Flashcards

Introduction Flashcards

1
Q

Individualism and consequentialism are a pillar of the neoclassical economics

A

True

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2
Q

Neoclassical economics uses mathematical normative models

A

True

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3
Q

According to neoclassical economics, the market is the perfect allocative mechanism

A

True

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4
Q

According to neoclassical economics, organizations are agents capable of action

A

False, 14

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5
Q

The postulate of ??? tells that only individuals are economic agents capable of action

A

Individualism

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6
Q

According to neoclassical theory, knowing the opinion of an individual is not important. Only actions matter

A

False

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7
Q

The postulate of ??? requires that agents take choices given that they know their consequences

A

Consequentiality

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8
Q

According to NCE (neoclassic economics) people know that their choices will lead to known consequences

A

True

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9
Q

An agent is interested only in the consequences that they will face

A

True

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10
Q

The postulate of ??? requires that agents take into account only the consequences they will personally face when it’s time for a decision

A

Selfishness

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11
Q

According to NCE, every decision whose benefits are higher than the costs can be chosen

A

False

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12
Q

The postulate ??? tells that people maximize their utility by taking the choice that at most maximizes the positive difference between benefits and costs

A

cost-benefit calculation

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13
Q

The postulate of ??? requires the researcher to understand an agent’s actions, beliefs, and opinions in order to understand social phenomenon

A

understanding

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14
Q

According to NCE, agents are able to get the best possible results given some constrains (substantial rationality)

A

True

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15
Q

According to NCE, agents maximize their utility function

A

True

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16
Q

If an agent does not optimize their utility function best they reach the results rationality, it is said that they follow ??? rationality instead of ??? rationality

INCOMPRENEIBILR

A

procedural, substancial

17
Q

??? is an invented word for describing the behavior of procedural rationality

A

Satisficing

18
Q

Target the Two experiments showed that people do not create habits if they work with repetitive activities

A

False

19
Q

In the target the two experiments there is one player that can change their card with the target if they are of the same color while the other can exchange only if they are of the same number

A

True

20
Q

In the game “target the two”, strategies 442 and 224 are indifferent to the initial desk

A

False

21
Q

??? are mental shortcuts that help the decision makers to build judgements and to take decisions that can be efficient considering the cognitive constraints

A

Heuristics

22
Q

??? are decision makers’ systematic and unconscious patterns of responses to judgment and decision problems. ??? are often produced using heuristics

A

Biases

23
Q

We can define heuristics as low-awareness “decision modules”

A

True pg 51

24
Q

We are aware, when we use a heuristic, that we are using it

A

False 51

25
Q

Biases are systematic errors of judgment that result from the use of heuristics

A

True

26
Q

Heuristics are always inefficient decision model

A

False

27
Q

Representativeness
Availability
Adjustment and anchoring

Are some famous heuristics

A

True

28
Q

The ???? heuristics implies that when a property is highly representative of A, then the probability that the property originates from A is considered high

A

Presentativeness

29
Q

“I tossed a coin four times and it always came tail, therefore the coin is rigged”. This is an example of what heuristics?

A

Representativeness heuristics (insensitivity to sample size)

30
Q

“He’s a very eccentric man, he must work in something related to creativity” is an example of what heuristics?

A

Representativeness (base-rate frequencies)

31
Q

The ????? is a statistical phenomenon so that given one extreme sample of a stochastic variable, another sample will be nearer to the mean

A

Regression toward the mean

32
Q

The performance in a test is normally distributed with a mean of 100 and a standard deviation of 15. People come not prepared for the test, which contains questions regarding any kind of education field. Two persons’ scores stand out.

One person’s score is 130. This person is praised
Another person’s score is 70. This person is reprimanded.

Since the score of the two samples are random when they repeat the test the results are 97 for the first person and 102 for the second.

Therefore the instructor thinks that reprimanding enhances performance while praising does the contrary.

This describes which statistical effects?

A

Regression towards the mean

33
Q

In general, the frequency of salient and recent events is overestimated because of which heuristics?

A

Availability

34
Q

“One month ago there was a radiation leakage at the nuclear plant. Nuclear power is a high danger for our health “ This thought describes which heuristics?

A

Availability

35
Q

The ??? heuristics says that the probability of an event is defined according to the ease with which the event comes to mind

A

Availability

36
Q

T&K proved that given lists of famous people of different sexes, the guessed majority sex was correlated with a high percentage of relatively more famous people of that guessed sex in the list.

This experiment regard which heuristics?

A

Availability

37
Q

If we show these sequences to two different people, one for each

8x7x6x5x4x3x2x1

1x2x3x4x5x6x7x8

and we ask the people to guess the results, we can expect that the former result will be significantly higher than the latter. This is due to which heuristics?

A

Anchoring

38
Q

Estimations are done starting from an initial value and then adjusted with respect to this reference, which is generally insufficient.

This defines which heuristics?

A

Anchoring/adjustment

39
Q

If we show this sequence to a person

8x7x6x5x4x3x2x1

And we ask them to guess the result

We can think that their guess will be significantly lower that the actual value. This is due because of which heuristics?

SBAGLIATA

A

Anchoring

Behavioural economics (6 decks)

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