No matter how rational we think we are; biases, heuristics, and other fallacies can keep us from making sound decisions. Kahneman has conducted numerous studies of how people actually make decisions, a field known as behavioral economics. Retrieve the interview with Kahneman, in the March 2012 Gallup Management Journal titled The Truth About How We Think. Utilize this short article as a reference for your paper.
http://www.gallup.com/businessjournal/153062/truth-think.aspx
INSTRUCTIONS
How can we better avoid the fallacies in thinking that Kahneman described? Please share how a person can fall prey to one of his fallacies in thinking. You'll want your example to be complex enough to warrant using a decision tree to make a better choice. Construct a decision tree in reference to a past personal or business decision in which you fell prey to fallacious thinking. After presenting your decision tree (showing what you should have known/done), discuss how this tool might help you prevent such a mistake in the future. Identify why and how a decision tree might aid you in making better decisions in relation to Kahneman's concerns.
- Restrict your response to decision-making step of the decision process, some call this step judgment and others assessment. Do not consider tools that apply to other parts of the decision process.
- The length should be between 350 and 450 words, excluding the title page and references. You would need to cite your sources; including the interview mentioned above conforming to APA 6th edition standards.