The paper shows that biases in individual’s decision-making may result from the process of mental editing by which subjects produce a “representation” of the decision problem. During this process, individuals make systematic use of default classifications in order to reduce the short-term memory load and the complexity of symbolic manipulation. The result is the construction of an imperfect mental representation of the problem that nevertheless has the advantage of being simple, and yielding “satisficing” decisions. The imperfection origins in a trade-off that exists between the simplicity of representation of a strategy and his efficiency. To obtain simplicity, the strategy’s rules have to be memorized and represented with some degree of abstraction, that allow to drastically reduce their number. Raising the level of abstraction with which a strategy’s rule is represented, means to extend the domain of validity of the rule beyond the field in which the rule has been experimented, and may therefore induce to include unintentionally domains in which the rule is inefficient. Therefore the rise of errors in the mental representation of a problem may be the natural" effect of the categorization and the identification of the building blocks of a strategy. The biases may be persistent and give rise to lock-in effect

Biases in human behavior / Egidi, Massimo. - ELETTRONICO. - (2002), pp. 1-33.

Biases in human behavior

Egidi, Massimo
2002-01-01

Abstract

The paper shows that biases in individual’s decision-making may result from the process of mental editing by which subjects produce a “representation” of the decision problem. During this process, individuals make systematic use of default classifications in order to reduce the short-term memory load and the complexity of symbolic manipulation. The result is the construction of an imperfect mental representation of the problem that nevertheless has the advantage of being simple, and yielding “satisficing” decisions. The imperfection origins in a trade-off that exists between the simplicity of representation of a strategy and his efficiency. To obtain simplicity, the strategy’s rules have to be memorized and represented with some degree of abstraction, that allow to drastically reduce their number. Raising the level of abstraction with which a strategy’s rule is represented, means to extend the domain of validity of the rule beyond the field in which the rule has been experimented, and may therefore induce to include unintentionally domains in which the rule is inefficient. Therefore the rise of errors in the mental representation of a problem may be the natural" effect of the categorization and the identification of the building blocks of a strategy. The biases may be persistent and give rise to lock-in effect
2002
Trento, Italia
Università degli Studi di Trento. Dipartimento di Economia
Biases in human behavior / Egidi, Massimo. - ELETTRONICO. - (2002), pp. 1-33.
Egidi, Massimo
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/358338
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