REPRESENTATION BIAS

Decision Making Biases & Errors

“A Choice From Two or More Alternative, Called

Decision”

Definition:

“It means the managers assess the likelihood of an event based on its

closeness to the other events, it is called Representation Bias”

REPRESENTATION BIAS

Occurrence Assessment Probability Recall thoughts Similarities.

Main Points:

EXPLANATION:Representation bias occurs through memory recall. When a decision maker has to analyze the options of a decision, he tends to recall a memory or experience that is similar to the present decision-making situation. In the representative heuristic we compare the similarity of two objects and assume that one is like the other (Aronson, 1999).

The representativeness heuristic argues that people see commonality between items or people of similar appearance, or between an object and a group it appears to be a part of.

Explanation:

If I meet three people from a company and they are all aggressive, I will assume that the company has an aggressive culture and that most other people from that firm will also be aggressive.

whenever we see a beggar, he or she must be poor, that’s our first thought. However, there are cases where some of them live in big houses!

Another example, bad drivers – if you see a bad driver, it must be a lady! So all these are stereotyping!

Example:

Conclusion:According to above said discussion I can conclude that people use the representative heuristic to make judgments or form impressions about someone or something.

THANKS…