Deck 4: Bounded Awareness

Question 1

When people are asked to predict their emotional responses to a negative event,such as a job termination,they expect that their emotional reaction will last _________ than it turns out to.

Answer 1

longer

Question 2

A publisher wants to bid for the rights to publish a celebrity's memoir.The publisher would be better off to:

A)Bid higher than what they think the book is worth,to avoid the winner's curse.
B)Bid lower than what they think the book is worth,to avoid the winner's curse.
C)Enter the bid early,in order to reduce uncertainty.
D)Enter the bid late,in order to reduce uncertainty.

Answer 2

B

Question 3

Face-to-face interaction in negotiations has been found to:

A)Help overcome the inefficient outcomes predicted by game theory.
B)Enhance the rationality of players as predicted by game theory.
C)Increase the attentional focus on shared information between the negotiating parties.
D)Make negotiators more eager to reach agreement in simple negotiations and less eager to reach agreement in complex negotiations.

Answer 3

A

Question 4

When trying to generate an accurate probability assessment,why is it better to consider all possible outcomes to a problem than to consider each possible outcome separately?

Question 5

Matching
a.Change blindness
b.The winner's curse
c.Inattentional blindness
d.Reference group neglect
e.System neglect
f.focalism
Japanese automakers started producing innovative new models in the 1980's and introducing them in the United States.General Motors did not see its market share is in danger,since it viewed itself as superior to the foreign manufacturers.Since then,until today,Japanese cars are regarded as the most reliable cars on the market.

Question 6

An example of bounded awareness in negotiations is when negotiators:

A)Assume that what worked in one context will not work in another,even when the contexts are similar.
B)Fail to consider the impact of their decisions on others outside the negotiation
C)Fail to realize that a publicly known deadline affects them just as much as the other party,and think they are put at an asymmetric advantage.
D)All of the above.

Question 7

Matching
a.Change blindness
b.The winner's curse
c.Inattentional blindness
d.Reference group neglect
e.System neglect
f.focalism
A team was in pursuit to sign a highly sought-after free agent.It gave the player the highest offer of all the teams,and ultimately signed him to a high-paying contract.The player did not live up to expectations during the subsequent season.

Question 8

The most critical barrier to a creative decision is:

A)System 2 thinking.
B)The failure to recognize subtle changes in the situation.
C)The failure to assign appropriate weight to information that is not readily available.
D)A narrow definition of the problem space.

Question 9

Matching
a.Change blindness
b.The winner's curse
c.Inattentional blindness
d.Reference group neglect
e.System neglect
f.focalism
Why it is easier to pass budget cuts in several incremental steps than in the form of one deep cut.

Question 10

Discuss the difference between bounded awareness and the availability heuristic.

Question 11

Entrepreneurs often fall prey to self-focus,which makes them too eager to enter _________ contests and too reluctant to enter ___________ competitions.

Question 12

Which of the following biases is most related to the Slippery Slope theory?

A)System neglect
B)Reference group neglect
C)Change blindness
D)Inattentional blindness

Question 13

In creative problem solving,composing a group of people,each with unique knowledge and perspective,is usually enough to avoid the problems of bounded awareness.

Question 14

Describe the main difference between the bounded awareness of individuals and the bounded awareness of groups.

Question 15

Discuss a strategy of overcoming bounded awareness of groups.

Question 16

Matching
a.Change blindness
b.The winner's curse
c.Inattentional blindness
d.Reference group neglect
e.System neglect
f.focalism
A firm replaces the receptionist who sits at the front desk and 80% of employees do not even notice that it is a different person who greets them each morning.

Question 17

Groups have a tendency to focus on _________ information,at the expense of _____________ information.

Question 18

What explanation does the book offer for the fact that two thirds of all corporate acquisitions fail to live up to the acquiring company's expectations?

Question 19

Matching
a.Change blindness
b.The winner's curse
c.Inattentional blindness
d.Reference group neglect
e.System neglect
f.focalism
The tendency to focus too much on a particular event and too little on other events that are likely to occur concurrently.

Question 20

The Slippery Slope theory explains why a single instance of unethical behavior can be justified.