The Availability Heuristic is a judgment shortcut by which individuals estimate the likelihood or frequency of an event based on how easily examples or instances come to mind. In essence, the more accessible or readily available an option is, the more likely people tend to judge that outcome to be. This heuristic was named and […]
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Bayes’ theorem refers to a probabilistic framework for updating beliefs in light of new evidence. Initially derived from the work of the Reverend (and statistician and philosopher) Thomas BayesBayes' theorem refers to a probabilistic framework for updating beliefs in light of new evidence. Initially derived from the work of the Reverend (and statistician... More, published in 1763, this theorem provides a formal method for revising prior probabilities based on observed data, thus allowing for the incorporation of new information.
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The term behavioral decision sciencesThe term behavioral decision sciencesThe term behavioral decision sciences refers to an interdisciplinary field that combines psychology, economics, statistics, computer science, and management science to understand how individuals, groups,... More refers to an interdisciplinary field that combines psychology, economics, statistics, computer science, and management science to understand how individuals, groups,… More refers to an interdisciplinary field that combines psychology, economics, statistics, computer science, and management science to understand how individuals, groups, and organizations make decision-relevant judgments
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In decision scienceThe term behavioral decision sciencesThe term behavioral decision sciences refers to an interdisciplinary field that combines psychology, economics, statistics, computer science, and management science to understand how individuals, groups,... More refers to an interdisciplinary field that combines psychology, economics, statistics, computer science, and management science to understand how individuals, groups,… More, biasIn decision science, bias refers to systematic and predictable deviations from accepted models of rationality. In scientific language, "systematic" and "predictable" are not meant to... More refers to systematic and predictable deviations from accepted models of rationality. In scientific language, “systematic” and “predictable” are not meant to imply that everyone exhibits the
The concept of bounded rationalityThe concept of bounded rationalityThe concept of bounded rationality refers to the idea that human rationality is constrained by (1) available information, (2) cognitive / information processing limitations, and... More refers to the idea that human rationality is constrained by (1) available information, (2) cognitive / information processing limitations, and… More refers to the idea that human rationality is constrained by (1) available information, (2) cognitive / information processing limitations, and (3) available time. The term
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Breaking evenBreaking even refers to a situation where a gambler wins an amount of money equal to the amount they have wagered over a certain period,… More refers to a situation where a gambler wins an amount of money equal to the amount they have wagered over a certain period, resulting in neither a net
Coherence versus CorrespondenceCoherence versus Correspondence In decision science, the terms "coherence" and "correspondence" refer to two different criteria for evaluating the quality or correctness of, beliefs, judgments,... More In decision scienceThe term behavioral decision sciences refers to an interdisciplinary field that combines psychology, economics, statistics, computer science, and management science to understand how individuals, groups,... More, the terms “coherence” and “correspondence” refer to two different criteria for evaluating the quality or correctness of, beliefs, judgments, or decisions. “Coherence” relates to their internal consistency. A coherent judgment is one that logically aligns with a person’s other beliefs or with accepted rules of logic and probability theory.
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Decisions from Experience vs Decisions from DescriptionDecisions from Experience vs Decisions from Description "Decisions from description" and "decisions from experience" are two paradigms in the experimental study of behavioral decision making.... More “Decisions from description” and “decisions from experience” are two paradigms in the experimental study of behavioral decision making. In “decisions from descriptionDecisions from Experience vs Decisions from Description “Decisions from description” and “decisions from experience” are two paradigms in the experimental study of behavioral decision making…. More,” individuals
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Decisions can be categorized based on the amount and nature of information available and decision scientists have developed somewhat standard definitions of the terms “risk”, “uncertainty”, and “certainty” to help with this distinction. Under “certainty”, the decision-maker knows with absolute clarity the outcomes associated with each decision, with no probabilities involved. An example is the
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Ecological ValidityEcological Validity has two distinct usages that will both sometimes be used. The most common usage comes from the experimentaI sciences and refers to the… More has two distinct usages that will both sometimes be used. The most common usage comes from the experimentaI sciences and refers to the degree to which experimental findings
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