The_Essential_Manager_s_Handbook

AVOIDING DECISION TRAPS / 417

ERROR DESCRIPTION

>>^ Making a decision based on limited information,^

even though information is readily available or would

have been available if enough effort had been put in

to finding it.

>> Recalling and assigning more weight to information that

was delivered in a vivid fashion, and giving less weight to

equally important, but dull, information.

>> Making decisions based on how the issues were framed

(for example, a glass may be described as being half

empty or half full). Risk-averse negotiators are more

likely to respond positively to offers that are framed in

terms of losses, for example, because they are afraid of

losing out; risk-seeking negotiators, by contrast, will

respond slowly, because they are willing to wait for a

better offer.

>> Drawing a conclusion based on a small number of

events, cases, or experiences, believing that your limited

experience allows you to generalize from it.

Information

availability

bias

Vividness bias

Framing and risk

Small numbers

bias

US_416-417_Avoiding_decision_traps_2.indd 417 30/05/16 3:07 pm