Common Causes of Very Bad Decisions · Collaborative Fund
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Common Causes Of Bad Decisions: Social Pressure
- People push their moral boundaries due to incentives and rewards.
- No one wants to be kicked out of a tribe or community so they play along.
- People do not think through the consequences.
- Little things and tiny, overlooked details snowball into something big.
- Other people's errors are easier to spot than one’s owns, leading to blind spots and denial of one’s faults.
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Common Causes Of Bad Decisions: Not Leaving Room For Error
- Many people are unable to put the effort and blindly follow simple calculations with black-and-white outcomes.
- Assuming that there is no room for error in the first place, and making a decision based on that.
- Underestimating the ability of things to change for the better, and banking on things to remain bleak and static.
- Idolizing others who may not be in the same space as you are, and following their actions and decisions.
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Common Causes Of Bad Decisions: Our Faulty Reasoning
- Inability to predict our response to risk and making knee-jerk decisions based out of fear.
- Past success leading to overconfidence and arrogance.
- The false assumption of the information on the table being the complete picture.
- Taking the wrong lessons from others' success and failures while not able to grasp the complex and diverse set of circumstances.
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The first step in the acquisition of wisdom is silence, the second listening, the third memory, the fourth practice, the fifth teaching others.
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