Our discussions

I found this article about the prospect theory and I think those paragraphs sum up well the different principles: Prospect theory, a theory about how people make choices between different options or prospects, is designed to better describe, explain, and predict the choices that the typical person makes, especially in a world of uncertainty. Prospect theory is characterized by the following: Certainty:  People have a strong preference for certainty and are willing to sacrifice income to achieve more certainty. For example, if option A is a guaranteed win of $1,000, and option B is an 80 percent chance of winning $1,400 but a 20 percent chance of winning nothing, people tend to prefer option A. Loss aversion:  People tend to give losses more weight than gains — they’re loss averse. So, if you gain $100 and lose $80, it may be considered a net  loss  in terms of satisfaction, even though you came out $20 ahead, because you’ll tend to focus on how muc...

GROUP DISCUSSION Chapter 14: In this group, we feel like we have not neglected base rates in our academical career, as we have chosen a path that has lots of outcomes, compared to being a musician or an actor for instance Chapter 12 : An example of availability heuristic is if several of your school friends in the last year come from the same place, you will believe there are more and more people coming from this place, even though this could just be random. Another example would be terrorism. As in France we have been struck in this last decade, we feel like terrorism has increased lately, whereas it hasn’t, the thing is that terrorism was just further away from us before. 

 

Our brain interact with 2 systems : system 1 and system 2, as discussed in the previous article.  This article outlines the link between brain and words, that not only our mind react, but also our body unconsciously.  There is a link that is been made between your brain and words. When you hear 2 words, you connect them for a short time, your body reacts, it triggers memories, and then unlinked them.  For example if i tell you do not think about an elephant , first thing you’ll do is thinking about an elephant. If I tell you : vomit & banana , you'll link them, have an unpleasant image in your mind, your face will react as well, and in few second, your mind will unlink those 2 words.  YOU THINK WITH YOUR BODY NOT ONLY WITH YOUR BRAIN Some words have a connotation because things have always been that way. Seeing a spider will make you feel uncomfortable, because 99% of the population does, and it has always been that way.  ...

How do we think ? What is the first impression we get when we read a sentence or when we first meet a new person ? Studies show that when we read a sentence that begins end ends by letters we are more likely to believe that the middle content letters as well. It is the same for numbers, we are more likely to believe the middle is numbers. But, sometimes it is not the case. Here, we can believe it is ABC or A13C. In the second one it is 121314 but it could be 12B14. So, our first impression is different than second. This is System 1. When we meet a new person and we discuss with him, we can believe he is nice. If somebody ask us, do you think this person gives money to charity ? We can believe alright, this person is nice so he may give money to charities. But we are not sure, no proof. If we start the description of somebody by a good adjectives, people are more likely to have a good opinion . of the person. If we start by a bad they are more likely to have a bad one. Wh...

System 1 and System 2