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Peak–end Rule
The peak–end rule is a psychological heuristic in which people judge an experience largely based on how they felt at its peak (i.e., its most intense point) and at its end, rather than based on the total sum or average of every moment of the experience. The effect occurs regardless of whether the experience is pleasant or unpleasant. To the heuristic, other information aside from that of the peak and end of the experience is not lost, but it is not used. This includes net pleasantness or unpleasantness and how long the experience lasted. The peak–end rule is thereby a specific form of the more general extension neglect and duration neglect. Overview The peak–end rule is an elaboration on the snapshot model of remembered utility proposed by Barbara Fredrickson and Daniel Kahneman. This model dictates that an event is not judged by the entirety of an experience, but by prototypical moments (or ''snapshots'') as a result of the representativeness heuristic. The remembered val ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Psychological Heuristic
Heuristics is the process by which humans use mental short cuts to arrive at decisions. Heuristics are simple strategies that humans, animals, organizations, and even machines use to quickly form judgments, make decisions, and find solutions to complex problems. Often this involves focusing on the most relevant aspects of a problem or situation to formulate a solution. While heuristic processes are used to find the answers and solutions that are ''most'' likely to work or be correct, they are not always right or the most accurate. Judgments and decisions based on heuristics are simply good enough to satisfy a pressing need in situations of uncertainty, where information is incomplete. In that sense they can differ from answers given by logic and probability. The economist and cognitive psychologist Herbert A. Simon introduced the concept of heuristics in the 1950s, suggesting there were limitations to rational decision making. In the 1970s, psychologists Amos Tversky and Daniel ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Primacy Effect
Serial-position effect is the tendency of a person to recall the first and last items in a series best, and the middle items worst. The term was coined by Hermann Ebbinghaus through studies he performed on himself, and refers to the finding that recall accuracy varies as a function of an item's position within a study list. When asked to recall a list of items in any order ( free recall), people tend to begin recall with the end of the list, recalling those items best (the recency effect). Among earlier list items, the first few items are recalled more frequently than the middle items (the primacy effect). One suggested reason for the primacy effect is that the initial items presented are most effectively stored in long-term memory because of the greater amount of processing devoted to them. (The first list item can be rehearsed by itself; the second must be rehearsed along with the first, the third along with the first and second, and so on.) The primacy effect is reduced when it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
List Of Cognitive Biases
Cognitive biases are systematic patterns of deviation from norm and/or rationality in judgment. They are often studied in psychology, sociology and behavioral economics. Although the reality of most of these biases is confirmed by reproducible research, there are often controversies about how to classify these biases or how to explain them. Several theoretical causes are known for some cognitive biases, which provides a classification of biases by their common generative mechanism (such as noisy information-processingMartin Hilbert (2012) "Toward a synthesis of cognitive biases: How noisy information processing can bias human decision making"'. Psychological Bulletin, 138(2), 211–237; free access to the study here: https://www.martinhilbert.net/toward-a-synthesis-of-cognitive-biases/). Gerd Gigerenzer has criticized the framing of cognitive biases as errors in judgment, and favors interpreting them as arising from rational deviations from logical thought. Explanations include ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Emotion And Memory
Emotion can have a powerful effect on humans and animals. Numerous studies have shown that the most vivid autobiographical memories tend to be of emotional events, which are likely to be recalled more often and with more clarity and detail than neutral events. The activity of emotionally enhanced memory retention can be linked to human evolution; during early development, responsive behavior to environmental events would have progressed as a process of trial and error. Survival depended on behavioral patterns that were repeated or reinforced through life and death situations. Through evolution, this process of learning became genetically embedded in humans and all animal species in what is known as flight or fight instinct. Artificially inducing this instinct through traumatic physical or emotional stimuli essentially creates the same physiological condition that heightens memory retention by exciting neuro-chemical activity affecting areas of the brain responsible for encodin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Semantic Memory
Semantic memory refers to general world knowledge that humans have accumulated throughout their lives. This general knowledge (word meanings, concepts, facts, and ideas) is intertwined in experience and dependent on culture. We can learn about new concepts by applying our knowledge learned from things in the past. Semantic memory is distinct from episodic memory, which is our memory of experiences and specific events that occur during our lives, from which we can recreate at any given point. For instance, semantic memory might contain information about what a cat is, whereas episodic memory might contain a specific memory of petting a particular cat. Semantic memory and episodic memory are both types of explicit memory (or declarative memory), that is, memory of facts or events that can be consciously recalled and "declared". The counterpart to declarative or explicit memory is nondeclarative memory or implicit memory. History The idea of semantic memory was first intro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Episodic Memory
Episodic memory is the memory of everyday events (such as times, location geography, associated emotions, and other contextual information) that can be explicitly stated or conjured. It is the collection of past personal experiences that occurred at particular times and places; for example, the party on one's 7th birthday. Along with semantic memory, it comprises the category of explicit memory, one of the two major divisions of long-term memory (the other being implicit memory). The term "episodic memory" was coined by Endel Tulving in 1972, referring to the distinction between knowing and remembering: ''knowing'' is factual recollection (semantic) whereas ''remembering'' is a feeling that is located in the past (episodic). One of the main components of episodic memory is the process of recollection, which elicits the retrieval of contextual information pertaining to a specific event or experience that has occurred. Tulving seminally defined three key properties of episodic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
University Of Canterbury
The University of Canterbury ( mi, Te Whare Wānanga o Waitaha; postnominal abbreviation ''Cantuar.'' or ''Cant.'' for ''Cantuariensis'', the Latin name for Canterbury) is a public research university based in Christchurch, New Zealand. It was founded in 1873 as Canterbury College, the first constituent college of the University of New Zealand. It is New Zealand's second-oldest university, after the University of Otago, itself founded four years earlier in 1869. Its original campus was in the Christchurch Central City, but in 1961 it became an independent university and began moving out of its original neo-gothic buildings, which were re-purposed as the Christchurch Arts Centre. The move was completed on 1 May 1975 and the university now operates its main campus in the Christchurch suburb of Ilam. The university is well known for its Engineering and Science programmes, with its Civil Engineering programme ranked 9th in the world (Academic Ranking of World Universities, 20 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loss Aversion
Loss aversion is the tendency to prefer avoiding losses to acquiring equivalent gains. The principle is prominent in the domain of economics. What distinguishes loss aversion from risk aversion is that the utility of a monetary payoff depends on what was previously experienced or was expected to happen. Some studies have suggested that losses are twice as powerful, psychologically, as gains. Loss aversion was first identified by Amos Tversky and Daniel Kahneman. Loss aversion implies that one who loses $100 will lose more satisfaction than the same person will gain satisfaction from a $100 windfall. In marketing, the use of trial periods and rebates tries to take advantage of the buyer's tendency to value the good more after the buyer incorporates it in the status quo. In past behavioral economics studies, users participate up until the threat of loss equals any incurred gains. Recent methods established by Botond Kőszegi and Matthew Rabin in experimental economics illustrat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rational Expectations
In economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the model's predictions as valid. Rational expectations ensure internal consistency in models involving uncertainty. To obtain consistency within a model, the predictions of future values of economically relevant variables from the model are assumed to be the same as that of the decision-makers in the model, given their information set, the nature of the random processes involved, and model structure. The rational expectations assumption is used especially in many contemporary macroeconomic models. Since most macroeconomic models today study decisions under uncertainty and over many periods, the expectations of individuals, firms, and government institutions about future economic conditions are an essential part of the model. To assume rational expectations is to assume that agents' expectations may be wrong, but are corr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adaptive Expectations
In economics, adaptive expectations is a hypothesized process by which people form their expectations about what will happen in the future based on what has happened in the past. For example, if people want to create an expectation of the inflation rate in the future, they can refer to past inflation rates to infer some consistencies and could derive a more accurate expectation the more years they consider. One simple version of adaptive expectations is stated in the following equation, where p^e is the next year's rate of inflation that is currently expected; p^e_is this year's rate of inflation that was expected last year; and p is this year's actual rate of inflation: :p^e = p^_ + \lambda (p - p^_) where \lambda is between 0 and 1. This says that current expectations of future inflation reflect past expectations and an "error-adjustment" term, in which current expectations are raised (or lowered) according to the gap between actual inflation and previous expectations. The err ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reference Price
A reference price (RP) is the price that a purchaser announces that it is willing to pay for a good or service. It is used by high-volume purchasers to inform suppliers. RP requires consumers to have access to price and quality information, which is not general practice in many industries. Further, it does not help consumers with urgent needs, cognitive and/or other impairments. Reference pricing requires sufficient competition. Otherwise, consumers have no choice about providers, who in turn face less pricing pressure. Reference pricing could encourage lower quality. "Reference price" in this context is distinct from its use in behavioral pricing scholarship. In that literature, a "reference price" refers to a mental standard of comparison or a posted statement of "normal" prices used to judge whether an offered price is good deal -- as in "Was $100, now $70." Reference prices in this context are related to work by Nobel Prize winner Richard Thaler on "transaction utility" in hi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interference Theory
The interference theory is a theory regarding human memory. Interference occurs in learning. The notion is that memory encoded in long-term memory (LTM) are forgotten and cannot be retrieved into short-term memory (STM) because either memory could interfere with the other.Edwards, W. H. (2010). ''Motor Learning and Control: From Theory to Practice''. Belmont, CA: Cengage Learning. There is an immense number of encoded memories within the storage of LTM. The challenge for memory retrieval is recalling the specific memory and working in the temporary workspace provided in STM. Retaining information regarding the relevant time of encoding memories into LTM influences interference strength. There are two types of interference effects: proactive and retroactive interference. History John A. Bergström is credited with conducting the first study regarding interference in 1892. His experiment was similar to the Stroop task and required subjects to sort two decks of cards with words int ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
