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From FastCompany: Frank Partnoy describes himself as an inveterate procrastinator — and the banker/lawyer/author is not convinced that’s a bad thing. His book Wait: The Art and Science of Delay is an investigation into his own habits of prolonged decision-making and the shortsightedness that pervaded crisis-era finance. Fast Company talked with Partnoy about when to make decisions, how to manage time, and why better-paid people are less happy.
From Garth Sundem at ChangeThis: In the weird, wild world outside the Petri dish, the correct decision is not always the right decision. There’s disconnect between the robot logic of business intelligence and human intuition of right and wrong. Does this disconnect imply that humans use free will to promote the koombayah ideas of fairness, morality, and goodwill toward men and most charismatic megafauna? Or is the human brain simply a cold, rational, pre-programmed computer that happens to take into account more factors than a Game Theory model?
From London School of Economics: Two systems drive the way we think and make choices: System One is fast, intuitive, and emotional; System Two is slower, more deliberative, and more logical. Over many years, Daniel Kahneman has conducted groundbreaking research into this – in his own words – “machinery of the mind”. Fast thinking has extraordinary capabilities, but also faults and biases. Intuitive impressions have a pervasive influence on our thoughts and our choices. Only by understanding how the two systems work together, Kahneman shows, can we learn the truth about the role of optimism in opening up a new business, and the importance of luck in a successful corporate strategy, or the difficulties of predicting what will make us happy in the future, and the psychological pitfalls of playing the stock market. Kahneman shows where we can trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choice are made in both our business and personal lives – and how we can guard against the mental glitches that often get us into trouble. This public conversation between Professor Kahneman and Professor Lord Layard celebrates the publication of Kahneman’s new book Thinking, Fast and Slow. · Watch video →
From a lecture by Daniel Kahneman, presented by Skeptics Society at CalTech, Sunday, November 6, 2011. In Thinking, fast and slow (2011), Kahneman takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive and emotional; System 2 is slower, more deliberative and more logical. · Read more →
From Maria Popova in The Atlantic: Legendary Israeli-American psychologist Daniel Kahneman is one of the most influential thinkers of our time. A Nobel laureate and founding father of modern behavioral economics, his work has shaped how we think about human error, risk, judgement, decision-making, happiness, and more. For the past half-century, he has profoundly impacted the academy and the C-suite, but it wasn’t until this month’s highly anticipated release of his “intellectual memoir,” Thinking, Fast and Slow, that Kahneman’s extraordinary contribution to humanity’s cerebral growth reached the mainstream — in the best way possible.
From strategy+business: The decisions made by powerful people in business and other fields have far-reaching effects on their organizations and employees. But this paper finds a link between having a sense of power and having a propensity to give short shrift to a crucial part of the decision-making process: listening to advice. Power increases confidence, the paper’s authors say, which can lead to an excessive belief in one’s own judgment and ultimately to flawed decisions.
From Strategy+Business: The decisions made by powerful people in business and other fields have far-reaching effects on their organizations and employees. But this paper finds a link between having a sense of power and having a propensity to give short shrift to a crucial part of the decision-making process: listening to advice. Power increases confidence, the paper’s authors say, which can lead to an excessive belief in one’s own judgment and ultimately to flawed decisions.
From John Tierney in NY Times: Decision fatigue helps explain why ordinarily sensible people get angry at colleagues and families, splurge on clothes, buy junk food at the supermarket and can’t resist the dealer’s offer to rustproof their new car. No matter how rational and high-minded you try to be, you can’t make decision after decision without paying a biological price. It’s different from ordinary physical fatigue — you’re not consciously aware of being tired — but you’re low on mental energy. The more choices you make throughout the day, the harder each one becomes for your brain, and eventually it looks for shortcuts, usually in either of two very different ways.