Schunk Behavioral Economics 13 . Heuristics versus Optimal Behavior
نویسنده
چکیده
In previous lectures, we have discussed that people often use so-called heuristics, e.g. anchoring and the representativeness heuristic, instead of behaving completely rationally. The present lecture, which is based on a paper by Seale and Rapoport (1997), shows how an experiment and a computer-simulation-study can be used to find out what decision rule/heuristic people use in a certain optimal stopping problem and how this decision rule compares to the optimal behavior. The paper has two main objectives:
منابع مشابه
Daniel Schunk ; Joachim Winter : The Relationship Between Risk Attitudes and Heuristics in
Experimental studies of search behavior suggest that individuals stop searching earlier than predicted by the optimal, risk-neutral stopping rule. Such behavior could be generated by two different classes of decision rules: rules that are optimal conditional on utility functions departing from risk neutrality, or heuristics derived from limited cognitive processing capacities and satisficing. T...
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