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Streetlights and Shadows: Searching for the Keys to Adaptive Decision Making

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Author Info
Gary Klein (Applied Research Associates)
Abstract

In making decisions, when should we go with our gut and when should we try to analyze every option? When should we use our intuition and when should we rely on logic and statistics? Most of us would probably agree that for important decisions, we should follow certain guidelines—gather as much information as possible, compare the options, pin down the goals before getting started. But in practice we make some of our best decisions by adapting to circumstances rather than blindly following procedures. In Streetlights and Shadows, Gary Klein debunks the conventional wisdom about how to make decisions. He takes ten commonly accepted claims about decision making and shows that they are better suited for the laboratory than for life. The standard advice works well when everything is clear, but the tough decisions involve shadowy conditions of complexity and ambiguity. Gathering masses of information, for example, works if the information is accurate and complete—but that doesn't often happen in the real world. (Think about the careful risk calculations that led to the downfall of the Wall Street investment houses.) Klein offers more realistic ideas about how to make decisions in real-life settings. He provides many examples—ranging from airline pilots and weather forecasters to sports announcers and Captain Jack Aubrey in Patrick O'Brian's Master and Commander novels—to make his point. All these decision makers saw things that others didn't. They used their expertise to pick up cues and to discern patterns and trends. We can make better decisions, Klein tells us, if we are prepared for complexity and ambiguity and if we will stop expecting the data to tell us everything. A Bradford Book

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Publisher Info
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This book is provided by The MIT Press in its series MIT Press Books with number 0262013398 and published in 2009.

Volume: 1
Edition: 1
ISBN: 0-262-01339-8
Handle: RePEc:mtp:titles:0262013398

Contact details of provider:
Web page: http://mitpress.mit.edu

For technical questions regarding this item, or to correct its listing, contact: (Jake Furbush).

Related research
Keywords: decision making;

Find related papers by JEL classification:
D8 - Microeconomics - - Information, Knowledge, and Uncertainty

Statistics
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This page was last updated on 2009-12-2.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.