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Why decision-making blunders are made
Each day, we automatically make thousands of choices, from what time to wake up to what to eat.
The problem with this automatic processing is that there are instances when we jump to conclusions that are wrong.
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6 of the largest decision-making blunders
Sunk-cost fallacy. Present yourself with the new options at hand -- without considering the sunk cost.
Narrow framing. When we're in situations that will repeat themselves over time, we should take a step back and play a game of averages.
Emotionally driven decisions. Hold off on making important decisions when you are in a bad mood.
Confirmation bias. Always look for conflicting evidence and then make judgments based on more well-rounded information.
Ego depletion. When we're drained, physically or mentally, we're less likely to think critically.
The halo effect says that once we like somebody, we're more likely to look for his or her positive characteristics and avoid the negative ones. Realize your biases toward certain people and do what you can to eliminate them.
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