Cognitive Biases Affect the Acceptance of Tradeoff Studies
Tradeoff studies involving human subjective calibration and data updating are often distrusted by decision makers. A review of objectivity and subjectivity in decision making confirms that prospect theory is a good model for actual human decision making. Relationships between tradeoff studies and the elements of experiments in judgment and decision making show that tradeoff studies are susceptible to human cognitive biases. Examples of relevant biases are given. Knowledge of these biases should help give decision makers more confidence in tradeoff studies.
KeywordsCognitive Bias Prospect Theory Ambiguity Aversion Human Decision Process Probability Weighting Function
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