Sofia University Decision Making Kahneman Causal Stereotypes Discussion

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  1. Explain what is a causal stereotype.
  2. Explain how causal stereotypes can influence a decision maker’s tendency to consider base rates or ignore base rates.

Kahneman, D. (2011). Thinking, fast and slow. New York, NY: Farrar, Straus, and Giroux.

  • Chapter 14: Tom W's Specialty
  • Chapter 16: Causes Trump Statistics

McNamee, P., & Celona, J. (2005). Decision analysis for the professional (4th ed.). Menlo Park, CA: SmartOrg, Inc.

  • Chapter 3: Decisions Under Uncertainty

Recommended Supplementary Readings

Klein, G. A., Orasanu, J., Calderwood, R., & Zsambok, C. E. (Eds.). (1993). Decision making in action: Models and methods. Westport, CT: Ablex Publishing.

  • Chapter 3: Three Paradigms for Viewing Decision Biases

Russo, J. E. & Schoemaker, P. J. H. (1989). Decision Traps. New York, NY: Doubleday.

  • Chapter 4: Knowing What You Don't Know

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Causal Stereotypes and Conditional Probability David Bergner, Ph. D. p. 1 Causal Stereotypes ▪Cab involved in accident, less-than-perfect witness ▪85% Green, 15% Blue ▪Witness says Blue, correct 80% of the time. ▪What is the probability the cab was blue? p. 2 Causal Stereotypes (cont.) ▪ Cab involved in accident, less-than-perfect witness ▪ 85% of accidents involve Green Cabs, and only 15% involve blue cabs. ▪ Witness says Blue, correct 80% of the time. ▪ What is the probability the cab was blue? Insights: ▪ Statistical base rates are generally underweighted or neglected altogether when other information, or a representative story, is available. ▪ Causal base rates are treated as applying to the specific case at hand, and are easily combined with other information in the narrative. ▪ System 1 can deal with stories in which the elements are causally linked, but is weak at statistical reasoning. p. 3 Summary ▪Note that causal stereotyping actually improves the intuitive statistics in the Green/Blue cab story. ▪System 1 can deal with stories in which the elements are causally linked, but is weak at statistical reasoning. ▪Stereotypes are good, because they are usually right, but compromise social justice due to the unacceptable cost of “false positives” ▪Dr. Martin Luther King, “Injustice anywhere is a threat to justice everywhere.” p. 4
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KAHNEMAN – CAUSAL STEREOTYPES

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Kahneman - Causal Stereotypes

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KAHNEMAN – CAUSAL STEREOTYPES

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Causal Stereotypes
A causal stereotype refers to an effortless connection of events even though the conn...


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