Judgment as a skill – The daily blog of behavioral and cognitive economics

Decision EQ™: The Biases That Hijack Judgment Under Pressure

Everyone brings biases into the Decision Room. Acknowledging them creates an opportunity to challenge their influence on the decision. Every high-stakes dispute is decided twice. Once on the facts, the evidence, and the law. And once in the mind of every person with a hand on the decision — under stress, under time pressure, with money, reputation, and identity all on the line. Legal strategy assumes the second decision does not exist. It treats the board, the owner, the investor as a rational actor who weighs cost, probability, and outcome the same way on day one as on day nine hundred. That assumption is almost never true, and the gap between it and reality has a name. We call it Decision EQ™. ….[READ]