Question

Thaler and Sunstein argue that people make systematic errors in making certain kinds of decisions. Give...

Thaler and Sunstein argue that people make systematic errors in making certain kinds of decisions. Give one example and briefly explain.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Soln. Systematic errors in certain kind of decision is mostly caused by lack of proper and adequate information. One example of such systematic error is casting vote to wrong candidate. Based on the biased information from other people, some time individual does not do proper research and analysis about the election candidate, and tends to caste vote to the candidate, who does not turned out to be correct in the future. So, this mistake was caused mostly because of the lack of information and biased mind set.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
#8 Research has shown that people have a hard time making correct decisions (being rational) on...
#8 Research has shown that people have a hard time making correct decisions (being rational) on even simple things. a) whats going on in the brain? b) What are the heuristics as discussed in this course? give some examples discussing how they work and how they lead us astray. c) why is the systematic incorrectness of heuristics interesting to economists? d) if people cannot easily be rational, how can we perhaps nudge them into the right behavior, without big, intrusive...
Define the following terms and give an example of each. Making decisions at the margin Allocative...
Define the following terms and give an example of each. Making decisions at the margin Allocative efficiency Negative technological change Substitutes in production Price ceiling Producer surplus Efficient market
Humans have been making decisions throughout history. The methods that we have used historically to make...
Humans have been making decisions throughout history. The methods that we have used historically to make decisions are now being replaced, in some cases, with more advanced decision-making methods. Is this a positive change? Think of an example where a more advanced method produces a positive or negative result. Considering this please address the following prompts in your discussion: Is this a positive change? Why or why not? Describe an example where a more advanced method produces a positive or...
Think about decisions you have had to make in your personal or professional life. In making...
Think about decisions you have had to make in your personal or professional life. In making your decision, did you follow ethical or moral principles? Explain.
Quick short answers. briefly explain reasoning. *Making decisions using IRR and payback analysis. *How to evaluate...
Quick short answers. briefly explain reasoning. *Making decisions using IRR and payback analysis. *How to evaluate multiple alternatives with multiple futures? *What are cash flow diagrams? *What is break even analysis? How to make decisions using break even analysis? *What are control charts? What are the different types? Which type of chart to use (depending on the characteristics)?
3. What is a Theory? Give an example of a theory in Organizational Behavior, and describe...
3. What is a Theory? Give an example of a theory in Organizational Behavior, and describe it. 4. Describe how you could test whether drinking 8 ounces of celery juice per day reduces hypertension. 5. Describe the The Rational Decision Making Model and the Behavioral Decision Making Model. Why do people rarely use the Rational Decision Making Model to make decisions? 6. What is the difference between the heuristics Anchoring and Adjustment & Escalation of Commitment? Give an example of...
Make up an example of a monthly demand schedule for pizza. . Give an example of...
Make up an example of a monthly demand schedule for pizza. . Give an example of something that would shift this demand curve, and briefly explain your reasoning. Would a change in the price of pizza shift this demand curve?
Give one example of a sample/population. this can be any group of people. simply explain whwt...
Give one example of a sample/population. this can be any group of people. simply explain whwt type of sample would be needed to address that population. you can choose a city if you wish. you will need to state briefly what you might be testing.
Make up an example of a monthly demand schedule for pizza. Give an example of something...
Make up an example of a monthly demand schedule for pizza. Give an example of something that would shift this demand curve and briefly explain your reasoning. Would a change in the price of pizza shift this demand curve?
To prevent politicians from making decisions that are good for the short run but bad for...
To prevent politicians from making decisions that are good for the short run but bad for the long run, some public choice economists propose: to reward politicians based on the size of the budgets they manage. to rotate political appointments between corporate leaders. to make government departments earn profits. longer and more term limits for Congressional politicians and the President. strict term limits (for example, one term) for all politicians.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT