Defensive Decision-Making - Joe Abittan

Defensive Decision-Making

One of the downfalls of a negative error cultures is that people become defensive over any mistake they make. Errors and mistakes are shamed and people who commit errors do their best to hide them or deflect responsibility. Within negative error cultures you are more likely to see people taking steps to distance themselves from … Continue reading Defensive Decision-Making

Positive Error Cultures - Joe Abittan

Positive Error Cultures

My last post was about negative error cultures and the harm they can create. Today is about the flip side, positive error cultures and how they can help encourage innovation, channel creativity, and help people learn to improve their decision-making. "On the other end of the spectrum," writes Gerd Gigerenzer in Risk Savvy, "are positive … Continue reading Positive Error Cultures

A mixture of Risks

A Mixture of Risks

In the book Risk Savvy, Gerd Gigerenzer explains the challenges we have with thinking statistically and how these difficulties can lead to poor decision-making. Humans have trouble holding lots of complex and conflicting information. We don't do well with decisions involving risk and decisions where we cannot possibly know all the relevant information necessary for … Continue reading A Mixture of Risks

Unconscious Rules of Thumb

Unconscious Rules of Thumb

Some of the decisions that I make are based on thorough calculations, analysis, evaluation of available options, and deliberate considerations of costs and benefits. When I am planning my workout routine, I think hard about how my legs have been feeling and what distance, elevation, and pace is reasonable for my upcoming workouts. I think … Continue reading Unconscious Rules of Thumb

Navigating Uncertainty with Nudges

Navigating Uncertainty with Nudges

In Risk Savvy Gerd Gigerenzer makes a distinction between known risks and uncertainty. In a foot note for a figure, he writes, "In everyday language, we make a distinction between certainty and risk, but the terms risk and uncertainty are used mostly as synonyms. They aren't. In a world of known risks, everything, including the … Continue reading Navigating Uncertainty with Nudges

Asymmetric Paternalism

Asymmetric Paternalism

While writing about the book Nudge by Richard Thaler and Cass Sunstein, I have primarily focused on an idea that the authors call Libertarian Paternalism. The idea is to structure choices and use nudges (slight incentives and structural approaches) to guide people toward making the best possible decision as judged by themselves. Maintaining free choice … Continue reading Asymmetric Paternalism

Too Many Options - Nudge by Cass Sunstein and Richard Thaler - Joe Abittan

Too Many Options

Writing specifically about new employee enrollment in retirement savings plans, Richard Thaler and Cass Sunstein in their book Nudge write, "One study finds that the more options in the plan, the lower the participation rates. This finding should not be surprising. With more options, the process becomes more confusing and difficult, and some people will … Continue reading Too Many Options

Learning and Exploratory Nudges - Joe Abittan

Learning and Exploratory Nudges

So far, a lot of the nudges I have written about assume that there is a known best option for an individual and that a choice architect can help direct people toward that best option. In situations like retirements savings, healthcare benefits selection, and other complicated, structured, and somewhat formulaic choice scenarios, it is relatively … Continue reading Learning and Exploratory Nudges

A Limitation on Nudges

A Limitation on Nudges

"Rare, difficult choices are good candidates for nudges," write Cass Sunstein and Richard Thaler. Throughout their book Nudge, Sunstein and Thaler try to encourage limitations on nudges. They acknowledge that anytime people are in a position to influence decision-making by determining how choices are designed and structured, they will be providing people with nudges, regardless … Continue reading A Limitation on Nudges