ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The peak–end rule is an elaboration on the snapshot model of remembered utility proposed by Barbara Fredrickson and Daniel Kahneman. This model dictates that an event is not judged by the entirety of an experience, but by prototypical moments (or snapshots) as a result of the representativeness heuristic.

Detailed explanation-2: -The peak-end rule occurs due to representativeness heuristic bias, memory bias, and recency bias. The representativeness heuristic bias is a bias that causes an individual to remember an experience in snapshots of a memory, rather than its entirety.

Detailed explanation-3: -The peak-end rule also shows us we don’t need an experience to be long to make a positive memory. For example, planning a vacation, an intense ski day trip full of high intensity bursts of excitement, may make as many positive memories as a week away at some far off exotic destination with less to do.

Detailed explanation-4: -According to the peak-end rule, our memory of past experience (pleasant or unpleasant) does not correspond to an average level of positive or negative feelings but to the most extreme point and the end of the episode (Kahneman, 2000b).

Detailed explanation-5: -The Peak-End Heuristic, or Peak-End Rule, describes your tendency to evaluate past experiences by focusing on the most intense, or peak, moments as well as the end moments of an experience, rather than the experience as a whole.