Week 9 Drop in session
In this week session we didn’t have any formal class but we had the opportunity to talk to David Hardman regarding the presentation that we were going to do in week 11 and also if we had any questions in relations to the coursework. However, as I have been nervous about the presentation because it’s not something that I would like to do in front of large amount of people. As I haven’t had any experiences in doing presentation before I found this task extra to acknowledge but there could be some few skills I could manage to apply when I do eventually present my topic.
Friday 15 January 2010
Week 8 Review session
In this week lecture the deadline of our fist assignment had to be posed on the wiki page, a new method for me that I wasn’t much recognised with but it interested me tremendously as I wasn’t aware of such method that could be used to hand in coursework. What I found so appealing about the wiki page is that it enabled me to talk to the other members in my group and see how they were progressing with their coursework’s. After having completed the assignment I personally experienced many complications. when writing up an essay about any certain topic I’m used to write all the part myself but whereas this time me and my group had to divide which par each group member had to write about. Some of the difficulty that my group and I experienced also is make the essay flow. we tried out best to make it not look individual work rather than looking as this essay was done individually and all the parts up together later. I found this experience of working in groups interesting because it enabled me to gain an inside view of how the other members within the group would think and also participate their ideas.
In this week lecture the deadline of our fist assignment had to be posed on the wiki page, a new method for me that I wasn’t much recognised with but it interested me tremendously as I wasn’t aware of such method that could be used to hand in coursework. What I found so appealing about the wiki page is that it enabled me to talk to the other members in my group and see how they were progressing with their coursework’s. After having completed the assignment I personally experienced many complications. when writing up an essay about any certain topic I’m used to write all the part myself but whereas this time me and my group had to divide which par each group member had to write about. Some of the difficulty that my group and I experienced also is make the essay flow. we tried out best to make it not look individual work rather than looking as this essay was done individually and all the parts up together later. I found this experience of working in groups interesting because it enabled me to gain an inside view of how the other members within the group would think and also participate their ideas.
Week 7 no formal class
In this there weren’t any classes as David Hardman the module teacher was away in Boston for conference. However, as we all were prepared to post the assignment on the wiki page my group and I saw that David Hardman had send an email to everyone as he said that he extended the coursework deadline to another week. Having read the message I felt very relieved as it gave my group and I the opportunity to improve the coursework for another week.
In this there weren’t any classes as David Hardman the module teacher was away in Boston for conference. However, as we all were prepared to post the assignment on the wiki page my group and I saw that David Hardman had send an email to everyone as he said that he extended the coursework deadline to another week. Having read the message I felt very relieved as it gave my group and I the opportunity to improve the coursework for another week.
Week 6 neoclassical theory versus prospect theory: evidence from the marketplace
This week reading focused on the endowment: Neoclassical THEORY VERSUS PROSPECT THEORY. Having read the paper I didn’t fully comprehend what the article was about at the beginning but after reading it a couple of times I started to understand the concept of the article. Neoclassical theory postulate s that preferences between two goods are independent of the consumer's current entitlements. Several experimental studies have recently provided strong evidence that this basic independence assumption, which is used in most theoretical and applied economic models to assess the operation of markets, is rarely appropriate.
My understanding of this article to start with is that neoclassical theory assumes that preferences between two goods are independent on the costumer’s current entitlements. However prospect theory sufficiently organizes behaviour among inexperienced consumers, whereas consumers with a intense market experience behave mainly in accordance with neoclassical predictions where nearly 500 participants were drawn from actively participating in a well functioning marketplace. The pattern of results indicates that learning primarily occurs on the sell side of the market: agents with intense market experience are more willing to part with their entitlements than lesser-experienced agents.
Therefore this evidence suggests that behaviour does change as market experience is accumulated. Moreover according to the endowment effect states that consumers that have significant market experience do not exhibit behaviour consistently with prospect theory; rather their behaviour is in the line with neoclassical prediction. Consequently neoclassical theory states that people tend to overprice item when they trying to sell something in order to make a profit exceeding the value of the goods. Furthermore to what I reached is that people make decisions only if they are benefiting from the decisions that they are making
Ps: i have been trying to edit the graph for the exercise you gave us in week 5 or 6 but im having difficulties with adding it to my report as its not accepting the graph it says that it an error in the page so i will however send it to you David hardman by email to prove that i have done the exercise thanks you
By Zina Kahdum
This week reading focused on the endowment: Neoclassical THEORY VERSUS PROSPECT THEORY. Having read the paper I didn’t fully comprehend what the article was about at the beginning but after reading it a couple of times I started to understand the concept of the article. Neoclassical theory postulate s that preferences between two goods are independent of the consumer's current entitlements. Several experimental studies have recently provided strong evidence that this basic independence assumption, which is used in most theoretical and applied economic models to assess the operation of markets, is rarely appropriate.
My understanding of this article to start with is that neoclassical theory assumes that preferences between two goods are independent on the costumer’s current entitlements. However prospect theory sufficiently organizes behaviour among inexperienced consumers, whereas consumers with a intense market experience behave mainly in accordance with neoclassical predictions where nearly 500 participants were drawn from actively participating in a well functioning marketplace. The pattern of results indicates that learning primarily occurs on the sell side of the market: agents with intense market experience are more willing to part with their entitlements than lesser-experienced agents.
Therefore this evidence suggests that behaviour does change as market experience is accumulated. Moreover according to the endowment effect states that consumers that have significant market experience do not exhibit behaviour consistently with prospect theory; rather their behaviour is in the line with neoclassical prediction. Consequently neoclassical theory states that people tend to overprice item when they trying to sell something in order to make a profit exceeding the value of the goods. Furthermore to what I reached is that people make decisions only if they are benefiting from the decisions that they are making
Ps: i have been trying to edit the graph for the exercise you gave us in week 5 or 6 but im having difficulties with adding it to my report as its not accepting the graph it says that it an error in the page so i will however send it to you David hardman by email to prove that i have done the exercise thanks you
By Zina Kahdum
Saturday 2 January 2010
Presentation week 11
In today’s lecture every group had to do a presentation about a given article that was provided by the lecture teacher David. As my group and I have been preparing for the last two weeks doing this presentation I have been excited as well as nervous about this presentation. The given topic that was provided for my group and I was Cognitive abilities and superior decision making under risk: A protocol analysis and process model evaluation we as a group all found it surprisingly challenging but at the same time it was straight forward understanding of the topic. As we had two weeks to prepare for the topic we took the opportunity wisely to present an adequate presentation.
However, this was the first presentation for me to undertake in front of such a large group of people I was also rather feeling anxious and wanted the presentation to be over and done with. Nevertheless as we approached the day of the presentation we all went up and all made sure that everyone was ready to present the topic. During I was astonishingly disappointed as the introduction was clearly presented of the topic even though one of my fellow group member had weeks to prepare. As when she finished the presentation we all felt a bit down but as it was my turn to present my part of he topic I found that I done quite well and had a clear outspoken presentation of the topic but at the same time I could have been less nervous. As the module’s assessment has been changed to coursework it was a bit of experience to all of us how to handle the outcome of such assessment.
Moreover the article was easily to understand as it demonstrates how individual difference in cognitive abilities and skills can predict normative superior and logically consistent judgement and decision. It also stated that people who are higher in cognitive abilities made more choices consistent with expected value.
However, theories most often assumed that the link between abilities and decision making result from the fact that more able individual have more cognitive resources available. Furthermore, I found that the beginning of the presentation could have been better explained as its one of the important part to be presented to the audience and preparation should have been made properly but its something to note down when another presentation take place
In today’s lecture every group had to do a presentation about a given article that was provided by the lecture teacher David. As my group and I have been preparing for the last two weeks doing this presentation I have been excited as well as nervous about this presentation. The given topic that was provided for my group and I was Cognitive abilities and superior decision making under risk: A protocol analysis and process model evaluation we as a group all found it surprisingly challenging but at the same time it was straight forward understanding of the topic. As we had two weeks to prepare for the topic we took the opportunity wisely to present an adequate presentation.
However, this was the first presentation for me to undertake in front of such a large group of people I was also rather feeling anxious and wanted the presentation to be over and done with. Nevertheless as we approached the day of the presentation we all went up and all made sure that everyone was ready to present the topic. During I was astonishingly disappointed as the introduction was clearly presented of the topic even though one of my fellow group member had weeks to prepare. As when she finished the presentation we all felt a bit down but as it was my turn to present my part of he topic I found that I done quite well and had a clear outspoken presentation of the topic but at the same time I could have been less nervous. As the module’s assessment has been changed to coursework it was a bit of experience to all of us how to handle the outcome of such assessment.
Moreover the article was easily to understand as it demonstrates how individual difference in cognitive abilities and skills can predict normative superior and logically consistent judgement and decision. It also stated that people who are higher in cognitive abilities made more choices consistent with expected value.
However, theories most often assumed that the link between abilities and decision making result from the fact that more able individual have more cognitive resources available. Furthermore, I found that the beginning of the presentation could have been better explained as its one of the important part to be presented to the audience and preparation should have been made properly but its something to note down when another presentation take place
Tuesday 8 December 2009
Week 5
Deep Thoughts and Shallow Frames: On the Susceptibility to Framing Effects
Reading the given article for this week article framing, however, this paper looks at the incident of framing effects when more than one thought are given to problems.
After having read the article I found it one of the most difficult one to understand because I had to read it a number of time to understand the concept of the topic framing.
According top one view stated that problem frames are an essential part of the way people think about decisions. However, this is because people are incapable to convert a problem into a frame independent representation. Furthermore frames frequently determine how a problem is professed and can’t be independently thought out of anymore than visual illusion which can be avoided with extra thoughts (Arkes, 1991; Thaler,)
Its said that framing effect tend to occur whenever dissimilar images of the same decision situation guide to different preference regardless of the fact that the acts, outcomes and contingencies linked with the decision that remain invariant across the descriptions .
However, I also found that regardless of the limited and definitely a number of diverse evidence, the field have most likely accepted some of the findings. Many researchers have understood the results as supporting the idea that dedicating extra thoughts to a problem reduces the likelihood of revealing framing effects. However, a number of studies have also been persuaded based on this assumption.
In general I have found this article very interesting to read it has also given me the notion of how framing occurs.
Deep Thoughts and Shallow Frames: On the Susceptibility to Framing Effects
Reading the given article for this week article framing, however, this paper looks at the incident of framing effects when more than one thought are given to problems.
After having read the article I found it one of the most difficult one to understand because I had to read it a number of time to understand the concept of the topic framing.
According top one view stated that problem frames are an essential part of the way people think about decisions. However, this is because people are incapable to convert a problem into a frame independent representation. Furthermore frames frequently determine how a problem is professed and can’t be independently thought out of anymore than visual illusion which can be avoided with extra thoughts (Arkes, 1991; Thaler,)
Its said that framing effect tend to occur whenever dissimilar images of the same decision situation guide to different preference regardless of the fact that the acts, outcomes and contingencies linked with the decision that remain invariant across the descriptions .
However, I also found that regardless of the limited and definitely a number of diverse evidence, the field have most likely accepted some of the findings. Many researchers have understood the results as supporting the idea that dedicating extra thoughts to a problem reduces the likelihood of revealing framing effects. However, a number of studies have also been persuaded based on this assumption.
In general I have found this article very interesting to read it has also given me the notion of how framing occurs.
Saturday 21 November 2009
Week 4
In this week’s lecture I had to read the article called Decisions under risk and uncertainty (1): Utility measurement and expected utility
Theory
This article explained what made people make such risky decisions. And what was the outcome of them taking such decisions. The concept of decision making and uncertainty: utility measurement and expected utility is a straightforward understanding of the theory. However, Daniel Bernoulli’s idea of expected utility decayed the valuation of a risky venture as the sum of utilities from outcomes weighted by the probabilities of outcomes. Specifically, Bernoulli's assumption of diminishing marginal utility seemed to imply that, in a gamble, a gain would increase utility less than a decline would reduce it.
Consequently, many concluded, the willingness to take on risk must be "irrational", and thus the issue of choice under risk or uncertainty was viewed suspiciously, or at least considered to be outside the realm of an economic theory which assumed rational actors. Throughout reading this article I realised that it wasn’t as difficult to understand as I though but what mostly interested me is the fact knowing how decision can be made and under what circumstances make people take certain decision. I also realised that that each group members had their own interpretation of the theory even though they were working as a group.
In this week’s lecture I had to read the article called Decisions under risk and uncertainty (1): Utility measurement and expected utility
Theory
This article explained what made people make such risky decisions. And what was the outcome of them taking such decisions. The concept of decision making and uncertainty: utility measurement and expected utility is a straightforward understanding of the theory. However, Daniel Bernoulli’s idea of expected utility decayed the valuation of a risky venture as the sum of utilities from outcomes weighted by the probabilities of outcomes. Specifically, Bernoulli's assumption of diminishing marginal utility seemed to imply that, in a gamble, a gain would increase utility less than a decline would reduce it.
Consequently, many concluded, the willingness to take on risk must be "irrational", and thus the issue of choice under risk or uncertainty was viewed suspiciously, or at least considered to be outside the realm of an economic theory which assumed rational actors. Throughout reading this article I realised that it wasn’t as difficult to understand as I though but what mostly interested me is the fact knowing how decision can be made and under what circumstances make people take certain decision. I also realised that that each group members had their own interpretation of the theory even though they were working as a group.
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