Read the summary and the most important questions on Inleiding Psychologie en Maatschappij: Economische Psychologie

• Artikel 3: Choices, Values, and Frames

  This is a preview. There are 28 more flashcards available for chapter 05/10/2015
  Show more cards here

• The normative analysis of decisioin making

  Concerned with the nature of rationality and the logic of decision making.

• The descriptive analysis of decision making

  Concerned with people's beliefs and preferences as they are, not as they should be.

• A riskless decision

  Concerns the acceptability of a transaction in which a good or a bad service is exchanged for money or labor.

• Subjective value of a gamble

  This is a weighted average, but now it is the subjective value of each outcome that is weighted by its probability.

• S-shaped function of losses and gains

  (a) defined on gains and losses rather than on total wealth
  (b) concave in the domain of gains and convex in the domain of losses, and
  (c) considerably steeper for losses than for gains.

• Dominance principle of rational choice

  Demands that if prospect A is at least as good as prospect B in every respect and better than B in at least one respect, then A should be preferred to B.

• Invariance principle of rational choice

  Requires that the preference order between prospects should not depend on the manner in which they are described. In particular, two versions of a choice problem that are recognized to be equivalent when shown together should elicit the same preference even when shown separately.

• Comprehensive (mental) account

  In which the saving would be evaluated in relation to, say, montly expenses.

• Artikel 6: When Choice is Demotivating: Can One Desire Too Much of a Good Thing?

  This is a preview. There are 13 more flashcards available for chapter 11/10/2015
  Show more cards here

• To what extent does having extensive choice initially seem desirable (Study 1 JAMS)

  60% stopped at the 24 jams
  40% stopped at the 6 jams
  There were no significant differences in sampling flavours in the two conditions.

• Is the initial attractiveness of extensive choice also reflected in subsequent purchasing behaviour? (Study 1 JAMS)

  30% of the limited-choice condition subsequently purchased a jar of jam
  3% of the consumers in the extensive-choice condition purchased a jar of jam
  THus, consumers initially exposed to limited choices proved considerably more likely to purchase the product than consumers who had initially encountered a much larger set of options.