Representation bias

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Occurrence
Assessment
Probability
Recall thoughts
Similarities.

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Representation bias

  1. 1. Decision Making Biases & Errors
  2. 2. Definition: “It means the managers assess the likelihood of an event based on its closeness to the other events, it is called Representation Bias”
  3. 3.  Occurrence  Assessment  Probability  Recall thoughts  Similarities.
  4. 4. Representation bias occurs through memory recall. When a decision maker has to analyze the options of a decision, he tends to recall a memory or experience that is similar to the present decision-making situation. In the representative heuristic we compare the similarity of two objects and assume that one is like the other (Aronson, 1999).
  5. 5.  The representativeness heuristic argues that people see commonality between items or people of similar appearance, or between an object and a group it appears to be a part of.
  6. 6.  If I meet three people from a company and they are all aggressive, I will assume that the company has an aggressive culture and that most other people from that firm will also be aggressive.  whenever we see a beggar, he or she must be poor, that’s our first thought. However, there are cases where some of them live in big houses!  Another example, bad drivers – if you see a bad driver, it must be a lady! So all these are stereotyping!
  7. 7. According to above said discussion I can conclude that people use the representative heuristic to make judgments or form impressions about someone or something.

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