An interesting debate in the decision-making field is: Are we good decision-makers? The Debate: Are We Good Decision Makers? This debate occurs most contentiously between supporters of Amos Tversky & Daniel Kahneman and those in Gerd Gigerenzer’s camp. Supporters of Tversky and Kahneman argue that in the 1970’s the core assumption in social science was…
Category: Decision Making
A Taxonomy Of Nudging
One of the most popular ideas in the behavioural sciences at the moment is “nudging”. This is applying a light touch to encourage people towards certain actions. People often are a little unclear on what a nudge is. As such it is helpful to have a taxonomy of nudging. What Is A Nudge? What Then…
Defaults Matter
There is a wonderful 2003 Science article about how people react to default choices. The conclusion? Defaults matter. Why Does This Matter? The article impresses for a number of reasons including: Saving lives matters. While it is not a theory paper the theoretical implications are substantial. What are people’s preferences — what they say or…
The Politician’s Fallacy
Yes Minister, a British TV show, explained a logical mistake called The Politician’s Fallacy. The politician sees a problem and feels that “Something must be done”, They find an approach and say “This is something”, Then they make a logical leap, “this must be done”. Measuring National Culture Numerical analysis of culture in business reminds…
Laziness Is A Sustainable Resource
People can be lazy. We often don’t find out all information relevant to the decision we are making. It is hard work to find information. Our decisions based upon limited information can lead to personally or environmentally destructive outcomes. People wouldn’t make these decisions if they thought a little harder. This is a problem. What…
Rational Voters?
Whenever I hear someone say “rational” I worry. Everyone means a different thing. This is a problem as obviously you can’t discuss rationality without knowing what it is. Bryan Caplan uses his view of rationality to criticize democracy in The Myth of the Rational Voter (Caplan 2007). The book left me with mixed feelings. I love…
Paranoia Doesn’t Make Sense
The most infuriating articles are written by otherwise impressive scholars. One such article is Roderick Kramer’s When Paranoia Makes Sense. Written in the aftermath of the September 11th terrorist attacks and the Enron debacle it may have resonated at the time. Still, it is irredeemably flawed and socially malignant. Kramer should have known better. Paranoia Doesn’t Make…
Selfishness and Rationality
People often imply that selfishness is central to rational decision making. Yet this is wrong by any meaningful definition of rationality. Selfishness and rationality are not inextricably intertwined. Defining Rationality Definitions matter in the real world. Managers can believe they commit a business sin by considering others — they are being irrational by not being…
