Activity 1: Based on the readings, develop Even Swap trade-offs re a decision to re-locate HQ of a firm from the factory in MD to New York City! Use assumptions as necessary to make your case.
Activity 2: Explain by examples how 3 different psychological traps may be avoided by using a decision matrix in the workplace.
The last main element of the PrOACT is discussed, Trade-Offs (T). After comparing the consequences of alternatives, elimination of some of the alternatives will help in making the decision. This can be done by evaluating the trade-offs, which is not easy when there are many alternatives and conflicting objectives. The more complex a decision, the more difficult the challenge! Using the Consequence Table discussed in week 5, a second table can be used to rank alternatives on each objective. This decision matrix is beneficial because it can reduce subjectivity about one alternative versus another alternative. Additionally, multiple decision matrices can be created that allows a user to see a variety of different outcomes.
In week 6, psychological traps are revisited and students learn about the many traps identified by Hammond, Keeney, and Raiffa.
- · The Anchoring Trap
- · The Status Quo Trap
- · The Sunk Cost Trap
- · The Confirming-Evidence Trap
- · The Framing Trap
- · The Overconfidence Trap
- · The Recall ability Trap
- · The Base-Rate Trap
- · The Prudence Trap
- · The Outguessing Randomness Trap
- · The Surprise-by-Surprise Trap
- Chapter 6: Tradeoffs, p. 83
- Chapter 10: Pychological Traps, p. 189