Lecture 13

Question 1

anchoring

Answer 1

when someone hears the numeric value we first state, they recognize they have to adjust for their own interest, but they don’t adjust suficiently

Question 2

fixed pie bias

Answer 2

not being able to look beyond the initial picture; you can make a win-win situation and create value for everyone

Ex. Israel-Egypt negotiations

Question 3

creativity and constraints

Answer 3

most creative people like to deal w/constraints; constraints help creativity, but type of constraint matters (Berg)

Question 4

heuristic

Answer 4

simple, basic rules of reasoning that can lead us astray

cognitive shortcuts that are adaptable for limited information processers, but lead to predictable traps

Question 5

biases in judgement

Answer 5

individual judgement and decision making is characterized by bounded info processing, and this leads to biases in judgment

1. availability heuristic
2. over-sampling positive cases
3. forecasting well-being

Question 6

availability heuristic

Answer 6

ex. more likely to die by disease or car accident?
disease = more likely
car accident = more available, captures attn

Question 7

over-sampling positive cases

Answer 7

if 1st impression of restaurant is +, you’re going to come back

Question 8

forecasting well-being

Answer 8

other people oftentimes are better predictions than our own imagination

Question 9

paradox of choice

Answer 9

more choice is exhausting, leads to more anticipated regret

Question 10

primal marks

Answer 10

primal mark = the first bit of content employees start with as they generate ideas, which anchors the trajectory of novelty and usefulness.

Familiar primal marks foster usefulness at the expense of novelty, while new primal marks foster novelty at the expense of usefulness.

Integrative primal marks that combine new and familiar content, fostering an optimal balance of novelty and usefulness