Decision analysis - Deepstash

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Daniel Kahneman: The Thought Leader Interview

Decision analysis

Decision making can be divided into three systems: Emotional, rational, and perceptual systems.

The rational model is one where the beliefs and desires are supposed to be determined, but decision analysis of the last thirty years has shown that it doesn't work. Even people who are explicitly trained to used System 2 thinking (reasoning) in problems don't do so, even when they know they should.

It doesn't mean you shouldn't take decision analysis, just that decision analysis are not effective if decision-makers do not want to relinquish the intelligence function to somebody else.

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