SEP 2012 Managing Biases in Strategic Judgment Managing Biases in Strategic Judgment Professor Ilya Strebulaev © Ilya Strebulaev 2012 SEP 2012 Managing Biases in Strategic Judgment © Ilya Strebulaev 2012 SEP 2012 Managing Biases in Strategic Judgment Heuristics and Rules of thumb • People rely on various heuristics when making most decisions –Evolutionary reasonable strategy –Helpful but can lead to severe errors –Can result in biases –People are unaware of using heuristics
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plaintiff’s decision which eventually led him to suffer a loss. Court found out that because of the lack of knowledge both buyer and dealer needed the expert opinion of the valuer was needed. Court widened the scope of the liability and liability of auditor to third party moved from Foreseen to reasonable foreseeability. After that case Federal Court continued this broader scope of liability in both cases in Federal Supreme Court (third civil senate) 10 November 19943 & Federal Supreme Court (third
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of our judgment about those things. In the Handbook of Epictetus‚ he claims that “what upsets people is not things themselves but their judgments about the things” (Epictetus). Our judgment affects many things like our emotions‚ opinions‚ and decisions we make. For example‚ in a situation where one person assists another person to cheat on a test and the person who assists the cheater is caught‚ the assister can do many things. Epictetus states three things that a person becomes
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convergence of IFRS and GAAP continues to impose new personal and professional challenges on U.S. auditors‚ it also presents new career opportunities for those who embrace the continuous‚ accelerating change that characterizes globalization. U.S. auditors who recognize the opportunities and prepare to take advantage of them have little to fear from the convergence. In contrast‚ auditors who are in denial about the convergence’s inevitable effects face a very different future. 1. Create an
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Wise Judgment When making a decision there are many things that a person must consider. There are five different components to wise judgment. A person must have some knowledge of what a human is programmed to do and what is socially acceptable. This is called “factual knowledge” (Bolt‚ 2004‚ p. 94). The person needs to understand the different roles that each person in his or her life play and how they may not play the same part twenty years from now. This is called “lifespan conceptualism”
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Blink has many snap judgments involved and decisions that people take a long time to consider. The standing question is: Which one of the two is better? Well‚ snap judgments help when split-second decisions are involved. An example of this is; if you were on the road and a car was coming at you at 40 mph. Decisions taken into consideration sometimes helps save lives. An example of this is‚ police. In one instant Gladwell describes teenage boys holding a gun to a bunch of police officers. The police
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Executive Summary This Preliminary Marketing Report has been prepared upon being commissioned by Apply to provide the company with an analysis of the market and an overview prior to launching the iPad product into the Australian market. The report will give an overview of the current situation along with strategies for the future. It looks at observing the current competitors that are aimed against the iPad and defining the industry in which the product is planned to be launched in. The analysis
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establishes that what is ethically right is determined by the situation rather than by a formal law or rule (Moore‚ 2010. Lecture week 5). This method of decision making has its advantages and disadvantages‚ an advantage would be the fact that this ethical judgment can be made only after the problem situation exists‚ not before (Christian‚ 2009. p 380) whereas the formalism and relativism have to meet certain ethical codes imposed by universal laws and society respectively. A disadvantage would be that no moral
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Social judgment theory holds that when a message is heard the receiver of the message immediately forms an opinion on the matter. The individual then categorized the opinion into one of three divisions known as attitude zones. From this point on‚ every new message about the same topic is compared with ones present point of view on the subject. Social judgment theory was introduced by psychologist Muzafer Sherif (Griffin‚ 2006‚ p. 207). As a part of his theory‚ Sherif‚ has three classifications for
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surroundings‚ both living and non-living -Habitat: the habitat of an organism is the place where it lives. Australian Environments * Terrestrial environments are environments on land. Land covers about 35% of the Earth’s surface. * Aquatic environments are water environments. Oceans cover about 65% of the Earth’s surface. * Terrestrial and aquatic environments have very different abiotic characteristics. Abiotic Characteristics Characteristic | In Aquatic environments | In Terrestrial
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