Some consequences of biased expectations

Slides:



Advertisements
Similar presentations
The Economic Performance Of Recent Mainland Chinese Immigrants In Toronto Lucia Lo York University.
Advertisements

W ORLD T RADE A FTER W ORLD W AR II: T HE E U, N AFTA, AND THE WTO Lesson 39.
Perception and Individual Decision Making
ELM Part 2- Economic models Manuela Samek
CHAPTER 1 LIMITS, ALTERNATIVES, AND CHOICES
Delusions of Success How Optimism Undermines Executives' Decisions by Dan Lovallo and Daniel Kahneman. July 2003 issue of The Harvard Business Review Presented.
Writing the Persuasive Essay. Objective Your purpose in writing an argumentative or persuasive essay is to convince your readers to share your viewpoint.
Ethics & Values NRS 101. About Ethics Ethics –System of moral principles governing behaviors and relationships –Standards of right and wrong Morality.
Population Studies: Migration
What Is Perception, and Why Is It Important?
Decision making Making decisions Optimal decisions Violations of rationality.
Chapter 2 Labor Supply.
The Role of the Self in Depression. Depression stats Prevalence: 20% of U.S. population Prevalence: 20% of U.S. population Women are twice as likely as.
Chapter 2 Taking Charge of Your Health >> Main Menu Next >> >> Chapter 2 Assessment Click for: Lesson 1 Making Responsible Decisions Teacher’s notes are.
Notes Over 12.2 Finding Combinations 1. An ice cream shop has a choice of 10 toppings. In how many ways can you choose 3 different toppings for your ice.
Business Ownership and Control
The Humanistic Approach Warm-Up Prompt Make a list of at least 15 needs you have in your life. Be sure not to have wants in your list.Make a list of at.
PAPER 3 REMINDERS. THREE SECTIONS Critical Thinking Moral Reasoning Tentative solution.
VI C. National Migration [See text, Chapter 7, pp and ] ECON 3508November 2015.
Using Economic Reasoning to Solve Mysteries. Economics in Action Lesson 3 ConceptsTEKS Choices ( 4) Economics. The student understands the basic principles.
1.2.1 Unit content Students should be able to: explain the underlying assumptions of rational economic decision making– consumers aim to maximise utility.
What should we do with the UK’s population? The OPTIONS; 1.Lower birth rates and immigration 2.Maintain a 2.1 fertility rate, have balanced migration 3.Free.
Investments in Human Capital: Education and Training
Warm-Up Identify an important decision you made in the last month. Explain what factors influenced your decision. Were you pleased with the outcome?
 Understand the concept and process of Perception  Explore how Perception influences behaviour  Understand the common Perceptual errors and how they.
What are some decisions you are currently making on your own?
Economist or Econo-Mystery? Economists maintain a very focused perspective on human activity and as such are very analytical, preferring to use mathematics.
WHY ARE ADULTS PAID BIG BUCKS TO PLAY GAMES?. Guide to Economic thinking 1. People choose. 2. People’s choices involve costs. 3. People respond to incentives.
Chapter 2 Taking Charge of Your Health >> Main Menu Next >> >> Chapter 2 Assessment Click for: Lesson 1 Making Responsible Decisions Teacher’s notes are.
HECMA PPt prepared by: Hanan Al Mansoori.
The Economic Way of Thinking Do you think like an economist?
 A truth on which other truths can be based.  We always want more than we can get and productive resources (natural, human, financial) are always limited.
Decision Making We could use two films here, so we want lots of extra time. What to cut out? Dangerous minds is good hopefully for expectancy and equity.
Trade restrictions and trade policy
Organizational Behavior (MGT-502)
ORGANIZATIONAL BEHAVIOR
CHAPTER 5: PERCEPTION AND INDIVIDUAL DECISION MAKING
Chapter 4 Voting and Elections
Chapter 15: Decision Making and Organizational Learning
WISE Economic Concepts
International Marketing
Unit content Students should be able to:
Decisions under risk Sri Hermawati.
AQA 1.2: Individual Economic Decision Making
Please copy down the four questions. Thanks!
Chapter 1: What is Economics? Section 2
Taking Charge of Your Health
Making Decisions.
9.3 Assessing internationalisation
Decision Making, Learning, Creativity and Entrepreneurship
Labour market integration and social inclusion
Marginal Cost and Marginal Benefit
Year 11 Mini-Assessment 5 HIGHER Contextual Questions.
Power And Intimate Relationships
IT’S OVER!!.
Bridging the gap between skills capacity and performance
Philip Drake & Stuart Toddington
Chapter 2 Lesson 2 Six Simple Steps to Good Decisions Bellringer
Refashioning our ideas about lawyer and client collaboration
When do we make decisions?
Choice and Opportunity Cost
"Evaluating Students' Evaluations of Teaching: Bias and Beyond"
7 Principles of Economic Thinking
Chapter 2 Lesson 2 Six Simple Steps to Good Decisions Bellringer
Chapter 2 Lesson 2 Six Simple Steps to Good Decisions Bellringer
Migration within the EU: Polish migrants move to the UK
Chapter 2 Lesson 2 Six Simple Steps to Good Decisions Bellringer
Opportunity Cost and Production Possibilities Frontier
An Activity of ILO- ASEAN TRIANGLE PROJECT
Making Simple Decisions
Presentation transcript:

Some consequences of biased expectations Chris Dawson School of Management

Optimism – overestimation of favourable outcomes For economists: Rational expectations “best” Optimism distorts the decision making process

Men have more of it than women!! Especially when it comes to assessing our ability and future prosperity Receiving £10 when expecting £5 feels pleasing; receiving £10 when expecting £100 feels disappointing.

Why are women less optimistic? Choose beliefs that Maximise Utility Optimism is a trade-off between future disappointment for current savouring For men: Savouring>Disappointment For women: Savouring<Disappointment

Migrant work ethic A8 expansion of the EU (2004) UK gave full access to workers from the A8 nations to work without restriction. Decision influenced by original predicted figure of increased migration of 8000 and 13,000 These migrants famed by a higher work ethic than natives

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.