Avoiding Decision-Making Traps

No matter which model you use, it is important to know and avoid the decision-making traps that exist.

Daniel Kahnemann (another Nobel Prize winner) and Amos Tversky spent decades studying how people make decisions. They found that individuals are influenced by:

  • Overconfidence bias
  • Hindsight bias
  • Anchoring bias
  • Framing bias
  • Escalation of commitment.