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Reasons we fail to make the best decision possible
- We’re (sometimes) stupid: irrational, tired or distracted;
- We have the wrong information;
- We use the wrong model;
- We fail to learn;
- We go with what's easy over what's right.
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Mental models
They are chunks of knowledge that can be simplified and applied to better understand the world, by identify what information is relevant in any given situation, and the most reasonable parameters to work in.
Mental models simplify complex processes.
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Why we make bad decisions
- We ignore the warning signs - feeling tired, emotional, distracted, in a rush...working in the "hurry up" culture.
- We focus on solving the wrong problem or fail to look at it in a broader sense.
- When we work on second-hand information...
To make better decisions...
- Avoid unintentionally doing something stupid. Never make important decisions when you’re tired, emotional, distracted, or in a rush.
- Make sure you're solving the right problem. Never let anyone else define the biggest problem to be solved.
- To...
The Tradeoffs We Make
We can easily function without having a conscious knowledge of what we're doing.
When people take the time to learn precise information, it can help save them in the long run. But because the long-term benefits are minimal, people will continue to use the front right burner.
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