Friday, 13 October 2017

Key words affect our decisions



Rubinstein, the Nobel Prize economics nominee, conducted a classroom survey and found the majority of the students did not have transitive preferences that their preferences sometimes contradicted with each other. From the results of the survey, it is clear that students can tell their preferences between several choices, but their decisions may contradict the decisions they had made previously.
Of course, people can change their individual preferences over times, it is not surprising to see that people make different preference choices. However, in this case, people change their individuals within a very limited time period (a time period that is only enough to finish a survey), it shows individuals change their preferences stochastically. To study into the case, we can see that individuals are very likely to make preference decisions independently and randomly without considering the previous decisions they have made. Moreover, especially when making simple preference decisions, people do not want to treat it very seriously or put too much efforts on it, so they tend to make decisions with only one step of thinking, make their decisions in terms of key words, no matter if it is a simple or a complicated case. From Rubinstein’s experiment, this is clearly shown, when more details are added into one question, even with the preferences of these additional details have already been answered by the students, the students still make decisions that contradict their previous decisions.
To conclude, if we do not think carefully, we can make contradicted decisions, especially when the key words can determine our preferences and lead us to making different decisions. This is referred as lexicographic preferences.

No comments:

Post a Comment