11-43 Decision-Making Biases

Obtain from your library a copy of the following article: D. Kahenman, D. Lovallo, and O. Sibony, "Before You Make That Big Decision..." Harvard Business Review competent, and well-intentioned managers are fallible..." (p. 60). They discuss a variety of cognitive biases associated with the decision-making process. Such biases can diminish the quality of decision. The authors maintain that understanding these biases can diminish the quality of decisions. The authors maintain that understanding these biases may decrease their effect and offer a checklist designed to facilitate decision quality control.

REQUIRED:

1. What is meant by the term "cognitive bias"?

2/ What is the specific decision-making context addressed by the authors of this article?

3. What are the three major categories of the decision quality-control checklist recommended by the authors?

4. What are the specific cognitive biases discussed by the authors of this article?