As I mentioned in how to act with uncertainty, every action comes with some amount of risk because we never know for sure how the future is going to work out. In general, the more information you have, the smaller the risk you’re taking. But the less information you have, the bigger the risk you’re [...]
Posts Tagged ‘Decision-Making’
There’s an important kind of wisdom in knowing what you don’t know. Too often we fall into the delusion of thinking we know a lot more than we really do, commonly known as “illusory superiority.” This can often make us stubborn in our beliefs and unwilling to accept new information. Ultimately, it stagnates our growth. [...]
The placebo effect is when an individual experiences benefits from a “sham drug” or “sham treatment” that is otherwise not supposed to have any medical benefits. The basic idea is that the mere suggestion that an individual is receiving an effective drug or treatment sometimes activates certain self-healing and self-boosting processes. While most research on [...]
At their core, psychology and business have a lot in common. Both seek to understand human being’s needs, desires, choices, and behaviors. What do people really want? What motivates people to make the decisions that they do? These are the types of questions that any psychologist or businessman should be asking themselves on a daily [...]
There is a lot of overlap between psychology and economics, because both focus on certain aspects of how we make decisions. When I look at the current state of our economy – especially growing personal debt and low credit scores among consumers – I often wonder what psychological factors are driving this behavior.