How Can Decision Making Be Improved?
AbstractThe optimal moment to address the question of how to improve human decision making has arrived. Thanks to fifty years of research by judgment and decision making scholars, psychologists have developed a detailed picture of the ways in which human judgment is bounded. This paper argues that the time has come to focus attention on the search for strategies that will improve bounded judgment because decision making errors are costly and are growing more costly, decision makers are receptive, and academic insights are sure to follow from research on improvement. In addition to calling for research on improvement strategies, this paper organizes the existing literature pertaining to improvement strategies, highlighting promising directions for future research.
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Bibliographic InfoPaper provided by Harvard Business School in its series Harvard Business School Working Papers with number 08-102.
Length: 12 pages
Date of creation: Jun 2008
Date of revision: Jul 2008
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-27 (All new papers)
- NEP-CBA-2008-06-27 (Central Banking)
- NEP-CBE-2008-06-27 (Cognitive & Behavioural Economics)
- NEP-KNM-2008-06-27 (Knowledge Management & Knowledge Economy)
- NEP-UPT-2008-06-27 (Utility Models & Prospect Theory)
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