Week 4 - Biases & Expertise vs Intuition Flashcards

1
Q

The central route

A
  1. Hovland et al.: Persuaded when we attend to, comprehend, and retain an argument in memory
  2. McGuire: Distinguished between the reception of a message and its later acceptance
  3. Greenwald: Elaboration is an important, intermediate step
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2
Q

Assumptions of the central route

A

The recipient is attentive, active, critical and thoughtful
* Assumption is correct only some of the time
* When it is correct, the persuasiveness of the message depends on the strength of the message’s content

The central route is a thoughtful process
* But not necessarily an objective one

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3
Q

The Peripheral route

A

People are persuaded on the basis of superficial, peripheral cues
* Message is evaluated through the use of simple-minded heuristics

People are also influenced by attitude-irrelevant factors

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4
Q

Sleeper effect

A

When people receive a communication associated with a discounting cue, such as a noncredible source

This has a high impact on people that already have high-credibility but not on people with low-credibility

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5
Q

What makes a persuasive source?

A
  1. Believable sources must be credible sources
  2. To be seen as credible, the source must have two distinct characteristics
    * Competence or expertise
    * Thrustworthiness
    * Confidence
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6
Q

What influences the likeability of a source?

A
  1. The similarity between the source and the audience
  2. The physical attractiveness of the source
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7
Q

Halo effect

A

A tendency for positive impressions of a person in one area to positively influence one’s opinion about this person or feelings in other areas

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8
Q

Halo Effect in Job Interviews

A

Interviewing has mixed effects:
* Live interviews may actually diminish the tendency to make simple stereotyped judgements
* But one source of bias may be physical attractiveness

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9
Q

Halo effect in Marketing

A
  1. Other products by same company
  2. Celebrity endorsement
  3. Product placement
  4. Flagships
    * Halo cars
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10
Q

Hindsight bias (knew-it-all-allong)

A

The tendency to perceive past events as more predictable than they really were

False sense of control
People often forget their initial opinion

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11
Q

Outcome bias

A

Bad outcome = Bad decision
Good outcome = Good decision

Basing the quality of the decision on the outcome (event in the process was bad/good)

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12
Q

Illusion of Validity

A

A bias in which people tend to overestimate their ability to interpret and predict the outcome when analyzing a set of data

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13
Q

Dunning-Kruger effect

A

A cognitive bias in which incompetent or unaware subjects overestimate their knowledge or expertise, considering themselves as more adept than they really are

On the other hand, high-ability individuals underestimate their relative competence and may erroneously assume that tasks which are easy for them are also easy for others

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14
Q

Sunk Cost Principle

A

People often violate the sunk cost principle of economics
* The principle that only future costs and benefits, not past commitments, should be considered in making a decision

Economic decisions are biased by past investments of time and money, and effort

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15
Q

Are expert better at detecting Truth or Deception?

A

Accuracy rate:
* Students: 52.82%
* CIA,FBI, and Military: 55.67%
* Police investigators: 55.79%
* Trial Judges: 56.73%
* Psychiatrists: 57.61%
* U.S. Secret Service Agents: 64.12%

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16
Q

Why do we have difficulty detecting deception

A
  1. Mismatch between the behavioral cues that actually signal deception and the ones used to detect deception
  2. Four channels of communication provide relevant information:
    * Words: Cannot be trusted
    * Face: Controllable
    * Body: Somewhat more revealing than face
    * Voice: Most revealing cue
    * Perceivers tune in to the wrong channels
17
Q

Why is there hostility against algorithms?

A
  1. Rooting for humans
  2. Moral dimensions
    * Called “unreal, incomplete, unholistic, dead, pedantic, sterile, rigid, blind” = “the horror of being denied treatment due to some cold algorithm”
  3. Whereas the ‘clinical method’ (interviews and such) “dynamic, global, meaningful, holistic, genuine, sensitive, understanding” = “the horror of making a mistake due to intuition-based decisions”
  4. Perhaps also fear of losing status as expert
18
Q

Expertise

A

A collection of mini skills within a domain

True experts know the limits of their knowledge

19
Q

Intuition

A

Knowing something without know how/why

Expert intuition could be related to experience
* Situation provided a cue, that gives the expert access to information in memory which provides the answer
* Kahneman: “it is nothing more and nothing less than recognition”

20
Q

The inside view

A

The inside view is the idea you have about your own direct circumstances (WYSIATI)
* Fails to allow for unknown unknowns
* Divorce, illnesses, bureaucracy
* “people who have information about an individual case don’t feel the need to know the statistics of the class the case belongs too”

21
Q

Planning fallacy

A

Plans and forecasts that are unrealistically close to best-case scenarios
* Could be improved by the outside view

22
Q

Competition neglect

A

WYSIATI causes entrepeneurs to take an inside view
* Focus on their plans and actions and most immediate threats and opportunities
* Fail to focus on the competition and how they fit in the plan = Sometimes floods the market so the avg. income becomes very low
* Overestimate the influence of effort on their success (80%)

23
Q

Are people too optimistic or negative when starting a business?

A

Too optimistic

24
Q

Dispositional Optimism

A

Tendency to expect positive outcomes

  1. Biologically: blood samples show optimists exhibit stronger immune response to stress
  2. Behavioral: explanatory style (cope different with negative outcomes)
  3. More happy
25
Q

Hopelesness and Death

A

High hopelessness = high risk cardiovascular disease and cancer