There was no lecture for week 7 but since we had the Wiki assignment to do, all of us worked on our Wiki. At first I had problems with editing the Wiki because I could not edit anything on my group's page and could not even comment it. Then I went to one of my group member and asked her how to get access to it and she told me what to do and the problem was solved. Basically this week I have been working on my Wiki and finished it.
When I checked weblearn I saw a message saying that we have to do a presentation on the Wiki in class. I then asked my group members and we are not quite sure what to do so therefore we decided to ask in class in week 8. We have also discussed a bit on the second Wiki since we got to know what topic we got and it is about jury decision. Since some of us have forensic psychology including myself, we have had a lecture about jury decision and hopefully that will help us with the Wiki. We are going to discuss more about the second Wiki in class when we all meet up in class in week 8.
Hopefully everything will be a success!
Thursday, 26 November 2009
Wednesday, 18 November 2009
Week 6
This week we have been focusing on endowment effect and my group was chosen to read the paper Neoclassical Theory Versus Prospect Theory: Evidence From the Market Place by List. This paper was quite easy to understand and not that difficult to read. At first I did not fully understand the neoclassical theory but then after the discussion with the group and help from the group members, I understood it. Neoclassical theory is to maximise the utility, making rational choice and act on all information. So far what we have been doing in class, every readings for the lecture links with each other. For example on most all the papers that I have read during this module, it has some linkage to prospect theory. Such as the paper mentioned, neoclassical theory and prospect theory were the main theories in the paper. With endowment effect, I can understand that people put a higher value to the things they earn and I somehow agree with it. I do think people put higher value on the tings they earn because as for myself I think I value my belongings higher.
In List's paper it mentioned that with less experienced dealer, prospect theory was found to have a stronger predictive power than for the experienced dealer. To predict the experienced dealer it was found that using the neoclassical theory was stronger. I can see that this makes sense because with inexperienced dealer they care more about gain and loss and losses weight heavier than gain. When loss is weight more than gain, it will be easier to predict with the inexperienced dealer because then we can focus more on the loss and predict what their outcome will be. With the experienced dealer, neoclassical theory predicted better because with neoclassical theory, the main point is to think rational in order to maximise the utility using all the information. In my own opinion experienced dealer will probably look at all the information provided and try to think how they can maximise their utility not only thinking about the loss and not putting a lot of weight on loss.
After discussing with the whole class, we then discussed about the Wiki project that is due in for Friday and it went good. We separated different tasks and everyone agreed on the task assigned. I thought it went well because everyone cooperated and there were no arguments about what who should do what. Our goal is to get it done before Friday and hopefully we can have it all done on time. We also discussed about the second wiki that we have to do for the rest of the semester which also went very well because everyone agreed on the same topics and I think we will again cooperate well on the next project.
In List's paper it mentioned that with less experienced dealer, prospect theory was found to have a stronger predictive power than for the experienced dealer. To predict the experienced dealer it was found that using the neoclassical theory was stronger. I can see that this makes sense because with inexperienced dealer they care more about gain and loss and losses weight heavier than gain. When loss is weight more than gain, it will be easier to predict with the inexperienced dealer because then we can focus more on the loss and predict what their outcome will be. With the experienced dealer, neoclassical theory predicted better because with neoclassical theory, the main point is to think rational in order to maximise the utility using all the information. In my own opinion experienced dealer will probably look at all the information provided and try to think how they can maximise their utility not only thinking about the loss and not putting a lot of weight on loss.
After discussing with the whole class, we then discussed about the Wiki project that is due in for Friday and it went good. We separated different tasks and everyone agreed on the task assigned. I thought it went well because everyone cooperated and there were no arguments about what who should do what. Our goal is to get it done before Friday and hopefully we can have it all done on time. We also discussed about the second wiki that we have to do for the rest of the semester which also went very well because everyone agreed on the same topics and I think we will again cooperate well on the next project.
Monday, 9 November 2009
Week 5
This week lecture was about framing and the paper I had to read was Gain-Loss Framing and Choice: Separating Outcome Formulations from Descriptor Formulations. First when I read this paper I thought it was not that hard to understand and I thought I understood everything. When it came to discussing and preparing information on the overhead paper, I found it hard for me to write down the important information and that I actually did not fully understood the paper. I think discussing the paper in class with the group members is a good idea because I find it useful and easier to understand the paper. It is sometimes hard to understand every important detail therefore discussing it may help.
I found Tversky and Kahneman experiment on the disease problem interesting and it is easy to remember. It is easy to remember because it relates to real life situations, even though the situation created may not happen but I could imagine it. I found the result most interesting because if taking more time to read the questions, they actually are the same but participant chose more of a positive effect. The first time I read the questions, I think I would choose the same as most of the participant did because I would choose people being saved rather than people being killed. I understood why participant would choose A and D but not A and C. Even though A and C are the same but the wording is different therefore affects participant’s decision on choosing their answer. After reading the disease problem I can see the relevant in Mandel’s follow up experiment because in Tversky and Kahneman’s disease problem experiment, there are problems with the wording and therefore may affect others decision. Reading Mandel’s paper I got somehow confused with his experiments but after discussing it in class I tend to get the main point and did understand the results.
Since it is getting closer to week 7, I’m a bit worried about the first assignment which is the first Wiki webpage we are supposed to create. I’m worried because none of us have done a Wiki before therefore is new to us and not sure where to start. We have somehow decided what topic we will be doing it on and hopefully we can all work well together.
I found Tversky and Kahneman experiment on the disease problem interesting and it is easy to remember. It is easy to remember because it relates to real life situations, even though the situation created may not happen but I could imagine it. I found the result most interesting because if taking more time to read the questions, they actually are the same but participant chose more of a positive effect. The first time I read the questions, I think I would choose the same as most of the participant did because I would choose people being saved rather than people being killed. I understood why participant would choose A and D but not A and C. Even though A and C are the same but the wording is different therefore affects participant’s decision on choosing their answer. After reading the disease problem I can see the relevant in Mandel’s follow up experiment because in Tversky and Kahneman’s disease problem experiment, there are problems with the wording and therefore may affect others decision. Reading Mandel’s paper I got somehow confused with his experiments but after discussing it in class I tend to get the main point and did understand the results.
Since it is getting closer to week 7, I’m a bit worried about the first assignment which is the first Wiki webpage we are supposed to create. I’m worried because none of us have done a Wiki before therefore is new to us and not sure where to start. We have somehow decided what topic we will be doing it on and hopefully we can all work well together.
Tuesday, 3 November 2009
Week 4
This week we were meant to read the paper "The Priority Heuristic: Making Choices Without Trade-Offs" and I found this paper not too difficult to read but sometimes quite confusing because of all the numbers. While reading this paper I have noticed that some of the information seemed quite familiar to me because we have touched upon it in cognitive 2.
We were then meant to do an exercise to measure our utility in two different ways. As shown on the right hand side I have done the exercise and roughly both graphs look the same. When plotting the graphs I got very confused and took me a long time to figure out how to do it. I'm not sure if I have the probability equivalence plotted correctly but I think the reason why it may look different is because of the figures and how the questions were set. For the certainty equivalence, it took me longer time to think about the questions than the probability one. It took me longer time because it really did make think through what to put down for my answers and that how much I'm willing to loose. I found it easier to put down the percentage because the higher the certain value gets, makes me clear that in order to make the lottery ticket and the certain value indifferent the percentage of winning the lottery must be higher. Completing this exercise makes me realise that I'm not a risk seeking person but rather a risk averse. I'm noticing this by when doing the exercise I'm not willing to spend a lot of money to risk wining more money and if I'm willing to then the percentage of winning more money must be high.
During the lecture, I found the taxi cases quite interesting that in America inexperience taxi driver would work longer on a normal day rather than a busy day. When I first heard that, I thought to myself why would they do that and not work longer on a busy day? After a bit of a discuss, I understood that taxi drivers set a target for themselves and therefore on a busy day, they can get off earlier because of reaching their targets quicker. I also understand the standard method to maximise earning is to take advantage on busy days, working longer and trying to earn more. Thinking about being a taxi driver, for me I would set a target for myself each day and work until I reach the target but also take advantage of working longer on busy days not setting a specific target. Wouldn't this maximise the earning even more?
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