Question 1

Can you think of two situations where you,or someone known to you,made a decision that was consistent with the certainty effect?

Accepted Answer

According to the certainty effect,people have a tendency to overweight certain outcomes relative to outcomes that are merely probable.Students may identify some instance where they have invested or favored an opportunity that offered assured returns to an opportunity that involved risks.

Question 2

Which of the following axioms states that the best outcome in a feasible set of outcomes will also be the best outcome in any smaller subset of feasible outcomes that still contains that outcome?

Accepted Answer

A)  the reducibility axiom 
B)  the betweenness axiom 
C)  the independence of irrelevant alternatives axiom 
D)  the substitutability axiom 
A)  the reducibility axiom 
B)  the betweenness axiom 
C)  the independence of irrelevant alternatives axiom 
D)  the substitutability axiom C

Question 3

If a utility function is concave,a decision maker will ________.

Accepted Answer

A)  always choose a risky gamble 
B)  always choose a sure thing 
C)  always make a decision in uncertainty or ignorance 
D)  choose a prospect whose expected value is identical to a sure thing 
A)  always choose a risky gamble 
B)  always choose a sure thing 
C)  always make a decision in uncertainty or ignorance 
D)  choose a prospect whose expected value is identical to a sure thing B

Question 4

According to the uniqueness axiom,a unique solution exists for each bargaining situation.

Accepted Answer

A) True 
 B)False

Question 5

In risky choice decision making situations,________.

Accepted Answer

A)  the decision maker is ignorant of the likelihood of events 
B)  the decision maker has to choose between two or more available options 
C)  the likelihood of events is unknown 
D)  the probabilities of events are known to the decision maker 
A)  the decision maker is ignorant of the likelihood of events 
B)  the decision maker has to choose between two or more available options 
C)  the likelihood of events is unknown 
D)  the probabilities of events are known to the decision maker

Question 6

In the multiattribute utility technique,after evaluation,each attribute is given a weight based on ________.

Accepted Answer

A)  how important that attribute is to him or her 
B)  the difficulty involved in carrying out the alternative 
C)  the relative utility or value of each alternative 
D)  the complexity in evaluating the alternative 
A)  how important that attribute is to him or her 
B)  the difficulty involved in carrying out the alternative 
C)  the relative utility or value of each alternative 
D)  the complexity in evaluating the alternative

Question 7

Ronald is an electrical engineer.He gets job offers from three companies,A,B,and C.Ronald prefers the offer from A over the offer from B and the offer from C over the offer from A.Hence it is evident that he prefers the offer from C over the offer from B.This scenario explains the ________ property of a utility function.

Accepted Answer

A)  reducibility 
B)  closure 
C)  comparability 
D)  transitivity 
A)  reducibility 
B)  closure 
C)  comparability 
D)  transitivity

Question 8

According to the ________ effect,people have a tendency to overweight certain outcomes relative to outcomes that are merely probable.

Accepted Answer

A)  possibility 
B)  probability 
C)  extremity 
D)  certainty 
A)  possibility 
B)  probability 
C)  extremity 
D)  certainty

Question 9

Which of the following is a key assumption of the utility function?

Accepted Answer

A)  Gambles of the form (x, p, y) should be equal to gambles of the form (y, p, x). 
B)  Gambles are not interchangeable even if the prizes are similar. 
C)  A person's attitude toward a lottery is not solely dependent on the ultimate prizes. 
D)  Every object considered for gambling is comparable. 
A)  Gambles of the form (x, p, y) should be equal to gambles of the form (y, p, x). 
B)  Gambles are not interchangeable even if the prizes are similar. 
C)  A person's attitude toward a lottery is not solely dependent on the ultimate prizes. 
D)  Every object considered for gambling is comparable.

Question 10

Which of the following is a valid characteristic of the value function?

Accepted Answer

A)  The shape of the value function does not change at the reference point. 
B)  The value function is noticeably steeper for losses than for gains. 
C)  At some focal amount of the pertinent outcome, negotiators consider larger amounts as losses and smaller amounts as gains. 
D)  The shape of the value function remains constant for an individual. 
A)  The shape of the value function does not change at the reference point. 
B)  The value function is noticeably steeper for losses than for gains. 
C)  At some focal amount of the pertinent outcome, negotiators consider larger amounts as losses and smaller amounts as gains. 
D)  The shape of the value function remains constant for an individual.

Question 11

Expected utility theory is a theory of choices made by an individual actor.

Accepted Answer

A) True 
 B)False

Question 12

The observed reluctance to pay to play a game,despite its objective attractiveness,is known as the St.Petersburg paradox.

Accepted Answer

A) True 
 B)False

Question 13

Nash's bargaining theory specifies ________.

Accepted Answer

A)  how to deal with irrational people during a negotiation 
B)  how negotiators should divide the pie 
C)  how negotiators can ensure personal growth 
D)  the measures of perfecting a rational model 
A)  how to deal with irrational people during a negotiation 
B)  how negotiators should divide the pie 
C)  how negotiators can ensure personal growth 
D)  the measures of perfecting a rational model

Question 14

The utility of a gamble equals ________.

Accepted Answer

A)  the extent of uncertainty associated with utility of the gamble 
B)  the expected utility of its outcomes 
C)  the actual utility of its outcome or prize 
D)  the level of risk associated with the gamble 
A)  the extent of uncertainty associated with utility of the gamble 
B)  the expected utility of its outcomes 
C)  the actual utility of its outcome or prize 
D)  the level of risk associated with the gamble

Question 15

Which of the following terms refers to the point at which objective probabilities and subjective weights coincide?

Accepted Answer

A)  utility point 
B)  crossover point 
C)  reference point 
D)  reservation point 
A)  utility point 
B)  crossover point 
C)  reference point 
D)  reservation point

Question 16

If a person's utility function is convex,his or her decisions will be risk-neutral and identical to those predicted by expected value maximization.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements describes the principle of diminishing marginal utility?

Accepted Answer

A)  Constant additions to monetary amounts result in less and less increased utility. 
B)  Trivial or marginal prizes offered in a gamble reduce its monetary value. 
C)  Total utility increases proportionally with every additional gamble played. 
D)  The value of a gamble diminishes as more and more people become interested in it. 
A)  Constant additions to monetary amounts result in less and less increased utility. 
B)  Trivial or marginal prizes offered in a gamble reduce its monetary value. 
C)  Total utility increases proportionally with every additional gamble played. 
D)  The value of a gamble diminishes as more and more people become interested in it.

Question 18

A(n)________ is the quantification of a person's preferences with respect to certain objects such as jobs,potential mates,and ice cream flavors.

Accepted Answer

A)  inverted-S function 
B)  utility function 
C)  probability weighting function 
D)  expected value 
A)  inverted-S function 
B)  utility function 
C)  probability weighting function 
D)  expected value

Question 19

According to the ________,one alternative leads another if it is strictly better on at least one dimension and at least as good on all others.

Accepted Answer

A)  expectation principle 
B)  regressiveness principle 
C)  dominance principle 
D)  symmetry principle 
A)  expectation principle 
B)  regressiveness principle 
C)  dominance principle 
D)  symmetry principle

Question 20

Rational models serve a diagnostic purpose to negotiators.

Accepted Answer

A) True 
 B)False

Can you think of two situations where you,or someone known to you,made a decision that was consistent with the certainty effect?

Which of the following axioms states that the best outcome in a feasible set of outcomes will also be the best outcome in any smaller subset of feasible outcomes that still contains that outcome?

If a utility function is concave,a decision maker will ________.

According to the uniqueness axiom,a unique solution exists for each bargaining situation.

In risky choice decision making situations,________.

In the multiattribute utility technique,after evaluation,each attribute is given a weight based on ________.

According to the ________ effect,people have a tendency to overweight certain outcomes relative to outcomes that are merely probable.

Which of the following is a key assumption of the utility function?

Which of the following is a valid characteristic of the value function?

Expected utility theory is a theory of choices made by an individual actor.

The observed reluctance to pay to play a game,despite its objective attractiveness,is known as the St.Petersburg paradox.

Nash's bargaining theory specifies ________.

The utility of a gamble equals ________.

Which of the following terms refers to the point at which objective probabilities and subjective weights coincide?

If a person's utility function is convex,his or her decisions will be risk-neutral and identical to those predicted by expected value maximization.

Which of the following statements describes the principle of diminishing marginal utility?

A(n)________ is the quantification of a person's preferences with respect to certain objects such as jobs,potential mates,and ice cream flavors.

According to the ________,one alternative leads another if it is strictly better on at least one dimension and at least as good on all others.

Rational models serve a diagnostic purpose to negotiators.

Negotiation: The Mind and the Heart

Preparation: What to Do Before Negotiation

Distributive Negotiation: Slicing the Pie

Win-Win Negotiation: Expanding the Pie

Developing a Negotiating Style

Establishing Trust and Building a Relationship

Power,Persuasion,and Ethics

Creativity and Problem Solving in Negotiations

Multiple Parties,Coalitions,and Teams

Cross-Cultural Negotiation

Tacit Negotiations and Social Dilemmas

Negotiating Via Information Technology

Nonverbal Communication and Lie Detection

Third-Party Intervention

Negotiating a Job Offer

Filters

Exam 13: Are You a Rational Person Check Yourself

Can you think of two situations where you,or someone known to you,made a decision that was consistent with the certainty effect?

Which of the following axioms states that the best outcome in a feasible set of outcomes will also be the best outcome in any smaller subset of feasible outcomes that still contains that outcome?

If a utility function is concave,a decision maker will ________.

According to the uniqueness axiom,a unique solution exists for each bargaining situation.

In risky choice decision making situations,________.

In the multiattribute utility technique,after evaluation,each attribute is given a weight based on ________.

According to the ________ effect,people have a tendency to overweight certain outcomes relative to outcomes that are merely probable.

Which of the following is a key assumption of the utility function?

Which of the following is a valid characteristic of the value function?

Expected utility theory is a theory of choices made by an individual actor.

The observed reluctance to pay to play a game,despite its objective attractiveness,is known as the St.Petersburg paradox.

Nash's bargaining theory specifies ________.

The utility of a gamble equals ________.

Which of the following terms refers to the point at which objective probabilities and subjective weights coincide?

If a person's utility function is convex,his or her decisions will be risk-neutral and identical to those predicted by expected value maximization.

Which of the following statements describes the principle of diminishing marginal utility?

A(n)________ is the quantification of a person's preferences with respect to certain objects such as jobs,potential mates,and ice cream flavors.

According to the ________,one alternative leads another if it is strictly better on at least one dimension and at least as good on all others.

Rational models serve a diagnostic purpose to negotiators.

Negotiation: The Mind and the Heart

Preparation: What to Do Before Negotiation

Distributive Negotiation: Slicing the Pie

Win-Win Negotiation: Expanding the Pie

Developing a Negotiating Style

Establishing Trust and Building a Relationship

Power,Persuasion,and Ethics

Creativity and Problem Solving in Negotiations

Multiple Parties,Coalitions,and Teams

Cross-Cultural Negotiation

Tacit Negotiations and Social Dilemmas

Negotiating Via Information Technology

Nonverbal Communication and Lie Detection

Third-Party Intervention

Negotiating a Job Offer

Filters