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  • Writer's picturedrschwank

Judgement and Decision-Making: A Global Perspective Part 2

How do we take decisions on a daily basis? Are they as rational, as we like to see ourselves deciding over things? No, we’re not, but that’s usually not a problem. Taking all possible decision-making factors into account for every decision we take - and we take many everyday - would be super exhausting. We therefore developed short cuts for decision-making, which we all know as stereotypes, learned generalizations or heuristics.

Behavioral economist Daniel Kahneman defined the fast irrational decision-making as system 1 and the slow, rational decision-making as system 2.

He used system 1 and system 2 thinking as metaphors for human decision-making processes. With the theoretical framework of system 1 and 2 many human behaviors can be explained.

In the majority of our decisions, we use system 1, we take unconscious decisions, impulsive decisions, and actions, later on we try to explain them by rationalizing our decision-making process, pretending we have taken all aspects into consideration, when in reality we didn’t.

Taking unconscious decisions isn’t more common in layman than in professionals, rather vice versa. Through repetition of tasks, professionals automatize thought processes and perform tasks faster and with less cognitive capacity necessary. This leaves room for additional judgment and decision-making, with might be lifesaving in certain medical situations, traffic or nautical maneuvering.

Both system 1 and 2 have their legitimate place and advantages and disadvantages. Being aware of the different thought processes is what matters, in reducing prejudice, stereotyping, and biased judgement and decision-making.



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