In a previous post, we considered three of seven "irrational" habits of highly rational people. Here we consider the remaining four, as well as some suggestions for distinguishing the genuinely ...

Discover how regret theory affects choices. It predicts decision-making by evaluating the anticipation of regret, impacting ...

In many everyday situations, decision-making comes with feedback on the consequences of one's choices, linked to their outcome: financial gain or loss, success or failure, information about ...

The brain favors repeating past actions over rational choice, explaining why we stick to habits even when better options exist.

For centuries, economics was built on a clean, mathematical premise: people make rational choices. They weigh costs and benefits, analyze risks, and select the option that maximizes their utility. It ...

Imagine the decisions you make every day, such as what to buy, who to trust, or who to vote for, are heavily influenced by a simple yet powerful flaw in your reasoning. Economists at the University of ...

Discover how emotional and cognitive biases affect investment decisions and learn strategies to identify and overcome these common pitfalls to optimize your portfolio.

Key points If someone made perfectly accurate judgments and sound decisions, would we recognize it? The science and philosophy of judgment and decision-making suggests that the answer is often “no.” ...