DECISION MAKING UNDER RISK AND UNCERTAINTY: II. BULGARIAN ECONOMISTS AND COMPUTER PROFESIONALS  Cover Image

ВЗЕМАНЕ НА РЕШЕНИЯ ПРИ РИСК И НЕОПРЕДЕЛЕНОСТ: II. БЪЛГАРСКИТЕ ИКОНОМИСТИ И КОМПЮТЪРНИ СПЕЦИАЛИСТИ
DECISION MAKING UNDER RISK AND UNCERTAINTY: II. BULGARIAN ECONOMISTS AND COMPUTER PROFESIONALS

Author(s): Elitsa Hristova, Encho Gerganov, Georgi Mengov
Subject(s): Psychology
Published by: Институт за изследване на населението и човека - Българска академия на науките

Summary/Abstract: Individual decision making under risk and uncertainty is known to deviate from the rational behaviour of maximizing profits and minimizing losses w.r.t. probabilities and available statistics. In this paper we studied such deviations by experiments in economic and business setting. We polled Bulgarians with relevant university degrees and some experience from two professional groups — economists (N = 52) and information technology experts (N = 48). We hypothesized that in economic and business decision making the economists would be more rational. Our results provide only partial support for this conjecture. While the economists had more consistent risk strategy, the IT experts fared better as intuitive statisticians by more skillfully applying the representativeness heuristic. Both groups were prone to substantial irrationality when the circumstances provoked affective reactions.

  • Issue Year: 08/2005
  • Issue No: 1
  • Page Range: 5-20
  • Page Count: 16
  • Language: Bulgarian