Thursday, March 02, 2006

Decision Traps

In decision making, one is subject to several decision traps:

1. Overconfidence
2. Shortsighted shortcuts
3. Overconfidence your judgement
4. Confirmation bias

E.g. there is a basis to overestimate the true value of people who are "sure", i.e. confident of their opinion. It might be a better idea to believe and trust people who are not sure and who are able to research the true result.

From 'Decision Traps', J. Edward Russo and Paul J.h. Schoemaker, Doubleday.

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