PPT-Loss Aversion, Endowment Effect & Sunk Costs

Psychology 466 Judgment amp Decision Making Instructor John Miyamoto 11162017 Lecture 082 Note This Powerpoint presentation may contain macros that I wrote to help me create the slides . and the . Endowment . Effect. Past. Expected. Future. Alternative. Nearby additional. Relevant Observed. Current. Multiple Alternative. Our choices . and our satisfaction . are driven by the . comparisons . Christina Ammon. The Firm/ Production. What is the aim of the firm? . Profits=Revenue-Total Economic Costs. Revenue=Price*Quantity. Total Economic Costs:. Concepts:. Total Economic Costs & Sunk Costs vs. Fixed and Variable Costs. Reflect. Remember yesterday we talked about the utility of our decisions.. All choices are made, either consciously or unconsciously, based on how happy they will make us.. Limitations. Life is full of limitations.. Who rides a tiger can never dismount.. Is Your Project Becoming a “Black Hole”?. OVERVIEW. What is escalation?. What drives it?. What can individuals and organizations do to protect themselves against becoming embroiled in an escalatory spiral?. -. dependence and . loss-aversio. n. Colin Camerer Caltech. RES Easter School 22-25 Mar 2015. Nearby objects (space, or time) often affect perception or valuation of a target stimulus. Neural and psychological effects. * R. Preston McAfee, Humanities and Social Sciences, California Institute of Technology, Pasadena, CA 91125 (E-mail: preston@mcafee.cc, Phone: 626-395-3476, Fax: 626-793-4681); Hugo M. Mialon, Departm The Acorn Endowment is an . investment. fund that will give off an . annual dividend to help offset some of Acorn’s yearly expenditures.. Why does Acorn Need an Endowment Fund?. Acorn School is a . Driving the World’s Costliest Cars. Teck-Hua Ho. University of California Berkeley. Joint . with . I.P.L. . . Png and Sadat Reza. National University of Singapore. May, 2013. 1. Key Research . question . Psychology 466: Judgment & Decision Making . Instructor: John Miyamoto. 11/14/2017: Lecture 08-1. Note: This . Powerpoint. presentation . may contain . macros that I wrote to help me create the slides. . Effect. Past. Expected. Future. Alternative. Nearby additional. Relevant Observed. Current. Multiple Alternative. Our choices . and our satisfaction . are driven by the . comparisons . we . make . Behavioral Economics Concepts. Development of an Individual Measure of Loss Aversion John W. Payne (Duke) Suzanne B. Shu (UCLA and NBER) Elizabeth C. Webb (Columbia)* Namika Sagara (Duke) Overview Development of a model-free individual-level measure of loss aversion Dan Ariely is Luis Alvarez Renta Professor of Management ScienceMassachusetts Institute of Technology e-mail arielymitedu JoelHuber is Professor of Marketing Fuqua School of Business Duke Univer-sity loss-aversio. n. Colin Camerer Caltech. RES Easter School 22-25 Mar 2015. Nearby objects (space, or time) often affect perception or valuation of a target stimulus. Neural and psychological effects. and . RATIONALITY – Some general comments. 2. 3. Decision Theory. Formidable foundations. Probability and reasoning about the future. Rational decision making. Deeply rooted in the Enlightenment. Major leaps in the mid-20.