Did your tutors also highlight relevant stuff after the sessions? Unfortunately I did not manage to ensure that I jot down every crucial point. If some of you managed to do so, it would be really nice if you could upload them.
I received this e-mail today for everyone wondering:
Thank you for your e-mail. The grades for Economic Psychology will be published very soon and in accordance with the time schedule of the examination office.
With best regards,
a. As Messi's reference point is one goal, you can draw a value function where his one goal represents the intercept (0,0) and a second goal illustrates the point +1 and no goals illustrate the point -1.
The respective values will be:
Value of scoring two goals = 1^0.88 = 1
Value of scoring one goal = -2.25*1^0.88 = -2.25
This illustrates that we are loss averse, the value of the loss (score zero goals) hurts more than the value we would derive by scoring two goals.
That's totally correct, wrote an e-mail to my tutor about that last week as I wasn't sure if availability to imagination is included as a third heuristic or not. But yes, it is included.
updated 2 years ago
Imagine you had a very sad morning and you lost 200 Euros. You are now faced with the two gambles below. Which option would you prefer and why?
Gamble A: Win 100 Euros with 30% of probability, lose 400 Euros with 20% of probability and win 50 Euros with the remaining probability.
Gamble B: You throw a single fair dice. If you throw the number 1 on your dice you win 1000 Euros, otherwise you lose 200 Euros.
Could someone help me with this Prospect theory exercice?
If you want to calculate it, they would give you some additional values for pi, beta and lambda. The general reasoning behind it is you have in Gamble A an 80% chance of winning something, so you anchor on the probabilities and underestimate the 20% chance of loosing something. In the second option you have a 80% chance of loosing and since we dislike looking more than we like winning we would go for option A, even though this might not be in line with expected utility. It's called gain-loss framing effects I think.
2 years ago
Anyone else kinda scared of the exam? I'm feeling like I almost forgot everything. How detailed did you learn?
learning the steps, examples and models by heart since early this morning but skipping quickly through the definitions since you can bullshit your way through. Watch some documentaries about Kahnemann and decision making then some from Jolls and Roth. Has to be a pass! Success!
2 years ago
Can someone please upload a list containing all relevant literature?