JOURNAL ARTICLE

The Hidden Traps in Decision-Making.

  • Published In: Harvard Business Review, 2023. P. 48 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 distorting executives' judgment. It explains how mental shortcuts (heuristics) and biases—such as anchoring, status-quo bias, sunk-cost fallacy, confirming-evidence bias, framing effects, and errors in estimating and forecasting—can lead to flawed decisions. The authors emphasize that while these cognitive traps are deeply ingrained and unavoidable, awareness and deliberate strategies—like considering alternative perspectives, questioning initial assumptions, and seeking unbiased input—can help managers mitigate their impact. Ultimately, the article advocates for disciplined decision processes to reduce errors and improve the quality of business choices.

Additional Information

  • Source:Harvard Business Review. 2023/10, p48
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2023
  • ISSN:0017-8012
  • Accession Number:173841619
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