What is Decision Making?Let's define decision making. Decision making is the act or process that involves making decisions. While we may make rational decisions sometimes however, there are occasions that we make emotional or irresponsible decisions that are confusing. This article explains why we make poor decisions and offers helpful frameworks that can help you expand your decision-making toolbox. We make bad decisions because of our mistakes. Although I like to think I'm a rational being, I know that I am not. It's not me and you. We all are insane. For a long period, researchers and economists believed that humans make rational, well-thought decisions. In recent decades, however researchers have found many mental errors that impede our thinking. The articles below outline the areas where we make mistakes and what to do about it. Common Mental Mistakes that Prevent your from making the right decisions. Let's talk about the most frequently made mental mistakes that we face, and then reduce them into simple terms. This article will help you understand how the survivorship bias and loss Aversion, Anchoring, confirmation bias, and the availability heuristic could all prevent you from making smart decisions. How to spot a common mental error that can lead to a misguided thought process It has been proven that there are hundreds of psychology studies that have proven that people are more likely to undervalue the significance of events and underestimate the significance of events they are able to recall quickly. This little error is known as an "illusory correlation" by psychologists. We will discuss an easy method to uncover your hidden assumptions and avoid an illusory correlation. Choose the choice you wish to make before coin flip. Two Harvard professors explain why our brains love to procrastinate. It's because we tend to be too focused on our present selves, and not enough about what our future selves will be like. If you want to beat procrastination, and make better longer-term decisions, then you must find the way to get your present self to do what is in the best interest of your future self. This article outlines three easy methods to achieve this. How to Use Mental Models to Make Smart Decisions The smartest way to improve your decision-making heads or tails capabilities is to study mental models. Mental models are a theory or framework that helps explain how the world functions the way it does. Each mental model represents a notion that can help us understand the nature of the world and offers an approach to the challenges of life. Find out more about mental models by reading Richard Feynman's Nobel Prize-winning article. You can also browse through the most influential mental models below. Top Mental Models to Improve Decision Making Margin of Safety: Always allow for the unexpected How do you tackle difficult problems by using the Inversion Technique Elon Musk and Bill Thurston on the Power of Thinking for Yourself
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