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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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.
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