Representation bias

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Transcript of Representation bias

Page 1: Representation bias
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REPRESENTATION BIAS

Decision Making Biases & Errors

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“A Choice From Two or More Alternative, Called

Decision”

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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

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Occurrence Assessment Probability Recall thoughts Similarities.

Main Points:

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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).

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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:

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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:

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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.

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THANKS…


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