ECONOMICS
DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The results are not reliable.
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The two questions in each condition although having the same potential outcome, are not actually the same choice.
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The study lacks any personal connection to the participants-making the task artificial.
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The study had a sampling bias.
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Detailed explanation-1: -Which of the following is not a valid criticism of Tversky and Kahneman’s (1981) study of loss aversion? The results are not reliable. The two questions in each condition although having the same potential outcome, are not actually the same choice.
Detailed explanation-2: -Kahneman and Tversky define this heuristic as a mental shortcut for making frequency or probability judgments based on “the ease with which instances or occurrences can be brought to mind” (p. 1127).
Detailed explanation-3: -A well-known top-down influence on decision making is the framing effect (Tversky and Kahneman, 1981). This cognitive bias indicates that phrasing the same decision problem in terms of gains or losses would alter the choice made by participants.
Detailed explanation-4: -In a way, heuristics are mental shortcuts that which can often be effective, which is why they tend to be used. There is no guarantee of success, but this approach is more practical in terms of time and effort required. heuristics may incorrectly apply familiar schemas to situations that do not match.
Detailed explanation-5: -Which of the following scenarios best illustrates the concept of the working backward heuristic? vow to never drive again because of the horrible accident you witnessed in front of your house..