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Humble Decision-Making Theory

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  • Amitai Etzioni

Abstract

Behavioural economics provides unusually robust data that show that people have hardwired, systematic cognitive biases that greatly limit their intellectual capabilities. From these observations follows a set of general guidelines for decision-making - humble decision-making theory - that if widely adopted may prevent decision-makers of all types from erring, encourage wiser decisions, and enhance overall contentment by helping those making and affected by decisions to moderate their expectations.

Suggested Citation

  • Amitai Etzioni, 2014. "Humble Decision-Making Theory," Public Management Review, Taylor & Francis Journals, vol. 16(5), pages 611-619, June.
    • Handle: RePEc:taf:pubmgr:v:16:y:2014:i:5:p:611-619
    DOI: 10.1080/14719037.2013.875392
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    References listed on IDEAS

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    1. Terrance Odean, 1998. "Are Investors Reluctant to Realize Their Losses?," Journal of Finance, American Finance Association, vol. 53(5), pages 1775-1798, October.
    2. repec:kap:iaecre:v:17:y:2011:i:4:p:476-483 is not listed on IDEAS
    3. Jaroslaw Ropega, 2011. "The Reasons and Symptoms of Failure in SME," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 476-483, November.
    4. Markku Kaustia & Milla Perttula, 2012. "Overconfidence and debiasing in the financial industry," Review of Behavioral Finance, Emerald Group Publishing Limited, vol. 4(1), pages 46-62, July.
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    Cited by:

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    2. Giovanni Ferri & Matteo Ploner & Matteo Rizzolli, 2016. "Count To Ten Before Trading: Evidence On The Role Of Deliberation In Experimental Financial Markets," CERBE Working Papers wpC07, CERBE Center for Relationship Banking and Economics.
    3. Zain UI Abideen & Zeeshan Ahmed & Huan Qiu & Yiwei Zhao, 2023. "Do Behavioral Biases Affect Investors’ Investment Decision Making? Evidence from the Pakistani Equity Market," Risks, MDPI, vol. 11(6), pages 1-32, June.
    4. Jeremiah, Rupin, 2017. "DECISION EVALUATION OF INNOVATION OFFSHORING: Swedish R&D in India," SSE Working Paper Series in Business Administration 2017:3, Stockholm School of Economics, revised 07 Dec 2017.
    5. Sune Ferreira-Schenk & Zandri Dickason-Koekemoer, 2023. "Analysing the Factors Affecting the Long-term Investment Intention of Investors," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 112-120, January.

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