Foundations

Framing Bias

People make decisions based on how problems or questions are framed rather than the facts.

Anchoring Bias

Our judgment is impacted by the first piece of information we receive, which can lead to disadvantaged outcomes.

Visibility Bias

A preference for information that is more frequently discussed or more prominently presented.

Sunk Costs

Continuing with endeavors despite the costs outweighing the benefits, making decision-making difficult.

System 1

A decision-making system based on intuition and emotion, often influenced by biases.

System 2

A rational thinking and analysis-based decision-making system that can be less intuitive.

Best Decision

For important decisions, train System 1 to recognize the need to utilize System 2.

Modeling

The logical analysis of organizational problems from an interdisciplinary view to develop solutions.

Implicit Models

A decision maker’s personal 'view of the world'.

Explicit Models

Conceptual, physical, schematic, or mathematical representations used to analyze decisions.

Analytical Models

Involve systems of relationships expressed mathematically.