Dear all,
Next class will be our last class on cognitive biases (after that, we will work on social preferences and coordination).
On the program:
1. Decoy effect
You are invited to read "Ariely D, Wallsten TS. 1995 Seeking subjective dominance in multidimensional space: An explanation of the asymmetric dominance effect. Organ. Behav. Hum. Decis. Process. 63, 223–232. (doi:10.1006/obhd.1995.1075)"
However. If you need to read just one text, please read the one on ambiguity aversion.
2. Ambiguity aversion: this will be the case study we will dedicate special attention to. Please read: Fox, C. R., & Tversky, A. (1995). Ambiguity aversion and comparative ignorance. The quarterly journal of economics, 585-603.
3. Summing it up (hopefully we will have some time): What is bounded rationality, and why it matters.
Christophe