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Pygmalion Effect Essay

Activity 1: In this activity, the decision concept demonstrated is that of the Pygmalion Effect. One characteristic of this theory is defining a condition based on a false premise. Based on the respondents’ answers to the scenarios presented to them, it was found out that they have biases against the Soviets not because of their policies but because of how their race seemed to the Americans. Activity 2: For the second activity, this was clearly a demonstration of the calibration theory, wherein the accuracy of the respondents’ answers were measured against the actual number of correct responses.

Activity 3: In the third activity, the Pygmalion Effect was again demonstrated. Majority of the respondents chose E and 4 in what was clearly an expectation and fulfillment scenario. They chose E and 4 because both satisfied the given conditions. Activity 4: The fourth activity demonstrates the Investment Trap theory. Majority of the second group, without knowing about the amount of investment, chose not to complete the project in light of a competitor’s more modern plane.

The second group’s ignorance of the total investment amount led them to decide against continuing the project. Question 2. These decision concepts imply that people make decisions based on

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factors known or unknown to them. Some people also make decisions based on preconceived ideas and notions about certain situations. These concepts also imply that our ways of making decisions are sometimes affected by biases and overconfidence.

Although overconfidence can lead to calibration errors, and the trap theory could provide flaws in important business decisions, I believe it’s the Pygmalion Effect that could have a potentially fatal result. For instance, during the period where slavery was a way of life for the African-American people, an all-white jury judging the case of a black slave would already have biases against the accused. These preconceived notions were there because it was part of society. The jury would have formed a decision even if the hearing had not started for the simple reason that the accused is black.

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