Kahneman and Tversky (1973) report that __________ and __________.
A) people give too little weight to recent experience compared to prior beliefs; tend to make forecasts that are too extreme given the uncertainty of their information
B) people give too much weight to recent experience compared to prior beliefs; tend to make forecasts that are too extreme given the uncertainty of their information
C) people give too little weight to recent experience compared to prior beliefs; tend to make forecasts that are not extreme enough given the uncertainty of their information
D) people give too much weight to recent experience compared to prior beliefs; tend to make forecasts that are not extreme enough given the uncertainty of their information

Question

Quizplus · Accepted Answer

Kahneman and Tversky's research in behavioral economics and psychology, particularly their work on the availability heuristic and representativeness heuristic, suggests that people often overemphasize recent experiences when making decisions or predictions, and they also tend to make overly confident forecasts despite the inherent uncertainty of information. This leads to the conclusion that people give too much weight to recent experience compared to prior beliefs and tend to make forecasts that are too extreme given the uncertainty of their information.

Kahneman and Tversky (1973) Report That __________ and __________

Kahneman and Tversky (1973) Report That and