How Can Decision Making Be Improved?
Decision making errors are costly and expensive.
This article argues that the time has come to focus attention on strategies that will improve judgment.
Daniel Kahneman, Amos Tversky, and others have clarified the specific ways in which decision makers are likely to be biased. As a result, we can now describe how people make decisions with astonishing detail and reliability. Furthermore, thanks to the normative models of economic theory, we have a clear vision of how much better decision making could be. If we all behaved optimally, costs and benefits would always be accurately weighed, impatience would not exist, no relevant information would ever be overlooked, and moral behavior would always be aligned with moral attitudes. Unfortunately, we have little understanding of how to help people overcome their many biases and behave optimally.
One way to improve your ability to consistently make good decisions is to use a framework.