Cognitive Biases

______________ are shortcuts and incomplete simplified strategies that we use.

• Algorithms

• Heuristics

• Confirmation Bias

• Prospect Theory

Using heuristics leads to _________________ ______________.

• Normative models

• Independent sysytems

• Cognitive Biases

• Descriptive models

______________ _______________ differentiated between 2 independent systems, system 1 and system 2.

• Huber, Payne, and Puto

• Daniel Kahneman

• Amos Tversky

• Wason

System __________ thinking is fast, instinctive, emotional, automatic and relatively unconscious.

• 2

• 1

• 3

• 4

System ______ thinking is slower, more analytical, logical, rule-based and conscious.

• 3

• 4

• 1

• 2

The ____________ __________ happens when we are more willing to take risks to avoid losses and have a tendency to avoid risk associated with gains.

• Expected Utility Theory

• Framing Effect

• Asymmetrically Dominated Decoy

• Confirmation Bias

______________ _________ is the tendency to seek out information that confirms pre-existing beliefs.

• Framing Effect

• Confirmation Bias

• Selective Attention

• Congruence Bias

An _______________ _____________ is a belief that 2 phenomena are connected when in fact they are not.

• Illusory Correlation

• Confirmation Bias

• Congruence Bias

• Framing Effect

_______________ _______________ __________________ are sets of beliefs that you have about the behavior of others; you predict their behavior on the basis of those beliefs.

• Expected Utility Theory

• Implicit Personality Theories

• Explicit Personality Theories

• Prospect Theory

Leon Festinger created the theory of _________________ ____________________, which is the tendency to avoid the mental stress of holding inconsistent beliefs.

• Cognitive Dissonance

• Expected Utility

• Prospect Utility

• Framing effect