JOURNAL ARTICLE

The Hidden Traps in Decision-Making.

  • Published In: Harvard Business Review, 2023. P. 62 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: HAMMOND, JOHN S.; KEENEY, RALPH L.; RAIFFA, HOWARD 3 of 3

Abstract

The article focuses on common psychological traps that can undermine business decision-making by executives, highlighting how inherent mental biases and heuristics distort judgment. It details specific traps such as anchoring, status-quo bias, sunk-cost fallacy, confirming-evidence bias, framing effects, and errors in estimating and forecasting under uncertainty, explaining their causes and manifestations. The article emphasizes that while these cognitive biases cannot be eliminated, awareness and disciplined decision processes—such as considering alternative perspectives, challenging assumptions, and seeking unbiased input—can help managers mitigate their impact. Understanding and compensating for these traps is presented as essential for improving the quality and reliability of critical business decisions.

Additional Information

  • Source:Harvard Business Review. 2023/04, p62
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2023
  • ISSN:0017-8012
  • Accession Number:164427140
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