Let's start with a definition of decision-making. Selecting decisions is exactly what it sounds like: the act or process of making choices. We make logical judgments on occasion, but we also make emotional, illogical, and perplexing ones on a regular basis. This website explains why we make bad judgments and offers frameworks to help you improve your decision-making skills.
I'd like to believe I'm a sensible person, but I'm not. The good news is that it isn't only me or you who are affected. We're all unreasonable in some way. For a long time, scientists and economics assumed that humans made rational, well-thought-out judgments. Researchers have discovered a wide spectrum of mental mistakes that impair human reasoning in recent decades. The articles below explain where we frequently go wrong and how to fix it.
5 Common Mental Errors That Keep You From Making Good Decisions: Let's take a look at some of the most common mental errors that people make and break them down into simple terms. Survivorship bias, loss aversion, the availability heuristic, anchoring, and confirmation bias all influence your capacity to make effective judgments, according to this study.
How to Recognize a Common Mental Error That Causes Irrational Thinking: Hundreds of psychological research have shown that humans tend to exaggerate the significance of events that are easy to recall while underestimating the significance of situations that are difficult to recall. This mental blunder is known as a "illusory connection" by psychologists. In this post, we'll go through a basic approach for identifying hidden assumptions and avoiding establishing an erroneous association.
One Reason Our Brains Love to Procrastinate, According to Two Harvard Professors: We have a propensity to be too concerned with our present selves and underly concerned with our future selves. You must discover a technique to make your current self act in the best interest of your future self if you wish to overcome procrastination and make better long-term decisions. This article explains three basic methods for doing so.
Learning mental models is the most effective technique to improve your decision-making abilities. A mental model is a framework or hypothesis that explains why things operate the way they do in the world. Each mental model is a notion that helps us make sense of the world and provides a perspective on life's challenges.
You may learn more about mental models by reading how Nobel Laureate physicist Richard Feynman utilises them, or by looking at a handful of the most prominent mental models listed below.
The Best Books on Making Decisions
Daniel Kahneman's book Thinking, Fast and Slow
Charles T. Munger's Poor Charlie's Almanack
Chip and Dan Heath's Decisive and Peter Bevelin's Seeking Wisdom
Looking for more amazing decision-making books? Take a look at my complete list of the finest decision-making books.
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