Week 11 - Content Flashcards
(12 cards)
What is risk aversion?
Biased toward avoiding negative outcomes even when that isn’t our best option.
What is risk?
Threat to ourselves activates our emotional biases that weaken our critical thinking.
What is the prospect theory?
Described perceived goodness or badness of outcomes from losses to gains is not linear.
- loss aversion: represents how much a loss of $100 annoys us more than a gain of the same amount gives us pleasure
-diminishing sensitivity: leveling off of the curves represents that we’ll enjoy winning $100, if we only have $100, if we only have $100 much more that we’d enjoy winning $100 if we had $900
What can influence probability estimates?
Memories (past probabilities), familiarity (may overestimate probability if something is familiar), biases (change our expectations of things).
How does confirmation bias influence us when we make uncertain decisions?
May suggest and exaggerate likelihood of an improbable outcome are often accepted if they fit with our ‘gut’ beliefs
What are two crucial elements when understanding risk?
Tolerance and perception of risk: personal and cultural/societal influences
Calculate or estimate risk from large number to comprehend relative risk
What are some personal factors which influence our perception of risk?
Education, wealth, family, relative status/power, age, health, disposition for fast thinking vs slow thinking.
Why is it an issue that Australia ranks low for risk tolerance?
Risk taking is productive in science, engineering, and innovation as progress is not achieveable without risk.
What are some example of public health schemes which Australia has implemented to reduce health risk and healthcare costs?
Led world in restricting smoking and road safety.
World leading in immunisations, elimation of HIV transmission/
What is the role of clinical trials in assessing therapeutic risk?
Reduce risk of medicines by using a phase 1 -3 trails to see if medicine works and if it is safe.
What is the purpose of the Therapeutic Goods Adminisatration (TGA) in Australia?
Access clinical trial results before public assess
Controls quality, supply and advertising of medicine and medical devices
What is the role of the Pharmaceutical Benefits Advisory Committee in Australia?
Weights up cost of medicine proposed by company vs its benefit (decides whether or not to list it on the PBS)
- process not present in US hence why high drug prices in US.
