1. Biases in Managerial Decision Making
Biases resulting from attention and memory related constraints
Biases resulting from underprocessing
Biases resulting from overprocessing

2. Biases Resulting from Attention and Memory-Related Constraints
Salience and vividness effects
Context effects
Biased assimilation
Pseudodiagnosticity

3. Attention and Memory Related Contraints...

4. Subjective values as a function of gains versus losses

7. Pseudodiagnosticity Success Rate
100%
70% 0%
Success Rate
Success for New Other Consulting Success rate
Product Ventures Firms’ Success Rate For New Products
(one consulting firm) for New Products without Consulting
Firms

8. Biases Resulting From Underprocessing
The representativeness heuristic (similarity-based judgment)
The availability heuristic (memory-based judgment)
The simulation heuristic (imagination-based judgment)
The anchoring-and-adjustment heuristic

13. Preference reversal Choice of gamble Choice of gamble
Gamble A Gamble B
Gamble A Gamble B
Anchor of Outcomes Anchor of Probabilities

14. Biases Resulting From Overprocessing
Correspondence bias
Using irrelevant analogies
The perseverance effect
The dilution effect
Premature cognitive commitment
Overcorrection for blatant sources of bias
Overinterpretation of random events

15. 7 Habits...