Bounded Awareness - The Value We Place On What We Own
6 important questions on Bounded Awareness - The Value We Place On What We Own
individuals underestimate disjunctive events (those that can occur independently)
and overestimate conjunctive events (those that must occur in conjunction with one another)
What is the 'winner' s curse'?
After the high(est) bid for a purchase, people feel uneasy about the purchase, censing that they got a rotten deal.
What is the key feature of the winner's curse?
one side has often more and better information than the other side.
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- Never study anything twice
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When you don't know the true value of a product, is it smart to set a bid?
No, because the strategic seller will nog provide the buyer with information when the company is at low value. If you bid, you can have a value loss.
What is the reference group neglect?
People focus ore on themselves, their strengths, than to the quality of their competition.
What is system neglect?
Tendency to undervalue the importance of the general context in which they are making their decision
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
