Predictably Irrational Chapter 8 PDF

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Predictably Irrational: Chapter 8 1. What was the finding of the Duke experiment? What heuristic, effect, or bias was being examined? The Duke experiment examined bias. Regarding the sports tickets, one would pay or sell only what they felt the value was. Both the ticket holders and the non-ticket holders, not one was willing to sell a ticket, the other was willing to pay. 2. What are the three irrational quirks of our human behavior? The first quirk is that we fall in love with what we already have. The 2nd quirk is that we focus on what we may lose rather than what we may gain. The 3rd quark assumes that other people will see the transaction from the same perspective we do. 3. How does ownership shape our perception? What makes homeowners more complex? The more work you put into something, the more ownership you feel. It becomes the pride of ownership. Homeownership is more complicated due to how much we invest of ourselves into our home. The more you work on it, make changes, upgrades and add on’s for others around you to view, the more pride you take in it, the more you value it. Even way more than others would. 4. What bias are we reading about in this chapter? Explain it. The bias that were are reading about is overvaluing or positivity bias. It is also called the “The Lake Woebegone Effect” We can be overly optimistic about the things we love....