Sessions 7-8: (April
14-15) (Classic Heuristics continued) Anchoring and Adjustment; and Social Heuristics
Week 4 Writing Assignment (if chosen, due in class Tuesday):
Rational decisions are
often defined as those that are made based on the weight of the evidence. That
is, the framing of the idea or manipulation by the influencer should have little
or no effect (the invariance principle). The book, Influence,
by Robert Cialdini, however, suggests that by applying six tactics, "compliance
experts" can get their boss, surbordinates, or clients, to say "Yes"
in situations where they actually would want to say "No".
Write up a (perhaps autobiographical)
mini story or scenario in a managerial/business setting, where you or someone
you know manipulated others using one or two of the above-mentioned tactics;
or, were/was manipulated by a "compliance expert". Concentrate on the
ethical and reputational dilemma of legitimate influence versus illegitimate manipulation
faced by the parties involved. Consider future similar situations, what are effective
measures that one could take to avoid being manipulated, or illegitimately manipulating
others?
Week
4 PowerPoint slides
Session 7: Anchoring
and Adjustment
After-class
Review Questions:
1. Why can the anchoring heuristic lead to biased decisions?
2. What causes us to anchor? What steps can we take to prevent
the anchoring bias?
3. Try to make a list of managerial situations in your future
career in which you or your colleagues are likely be become
anchored. What can you do about it?
Topics:
- Frames
of Reference
- Endowment Effects
- Anchoring in IPOs
Session 8: Social
Heuristics
BEFORE-CLASS
Readings:
*** Influence: Science
and Practice, by Robert B. Cialdini
Topics:
- Fixed Action Patterns and Trigger Features
- The Contrast Principle
- The Fifth W: "because . . . "
- Reciprocation
- The Concession Principle
- Commitment and Consistency: Cognitive Dissonance
- Social Proof
- Liking
- Authority
- Scarcity
Class
Preparation and Discussion Questions:
- These are social heuristics to which we can easily fall
prey, and the best way to keep that from happening is awareness.
Awareness "happens" from a multitude of examples.
I plan to ask each one of you for at least one "social
historic" example. Think back! I'm sure you have some
good stories to tell.
- Good decisions occur not just from active rational choices
but also from resisting subtle, psychological traps. As
you read Influence, make a list of the "compliance
techniques" that Cialdini describes that have already
or may be used against you in prior or future jobs.
- A good manager must be able to persuade bosses and subordinates
that his or her (hopefully good) decisions should be acted
upon. Cialdini suggests that forces other than pure rationality
and the merits of the case will play a big role in peoples'
commitments. What are or should be the distinctions between
ethical and non-ethical means to influence your colleagues?
- Think of at least 5 examples in the past of how reciprocation
influenced your choices. In how many cases were your choices
sub-optimal because of this pressure? Describe.
- Is the concession principle always the best initial idea
in negotiations? How does it relate to other earlier topics
in this course?
- What principles should you know and actively remember
to defeat salespeople or other compliance experts at their
game of trying to bilk you?