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Biases in Decision Making

- Discuss common biases in decision making.
- Explain the roles of emotion and fairness in decision making.
- Compare reflective and expedient decision making.

focus on a decision and evaluate the decision you made using any two of the following biases: availability, heuristic, bias related to the representative heuristic, bias related to anchoring or adjustment, uncertainty avoidance, framing effects, positive illusions, egocentrism, and regret avoidance.
- Do you feel that the decision would have been different had the two biases you chose, not existed?

Objective:
- Summarize the role of decision making in business.
- Explain the roles of emotion and fairness in decision making.
- Compare reflective and expedient decision making.
- Discuss common biases in decision making.

Solution Preview

The response addresses the queries posted in 646 words with references.

//In this paper, the reasons behind biased decision making will be discussed, which enables the business leader to take decision irrationally. The factors, which affects the results due to biasness will also be discussed here//

Decision making process: Decision making holds an important position in the business environment. It plays an important role in the long term strategic decisions regarding the company, like salary payments, technological decisions, and human resource management, competitive advantage etc. But in decision making processes there is an existence of biases. For exampled heuristics also plays an important role in the decision process. It deals with the psychological approach of the superiors. It comes out as a result of judgment through mental shortcuts (good experiences or positive results in past) (Kahneman, Slovic & Tversky, 1982). Another example of bias dealings is uncertainty. It is random in nature and has likely limit of uncertainty in the results. Besides this, there's another cognitive bias i.e. availability bias. It leads people ...

Solution Summary

The response addresses the queries posted in 646 words with references.

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