Business Savvy

The recallability decision-making trap prompts us to give undue weight to recent dramatic events. Illustration: We were at the beach recently, and my son got stung by

Prudence leads us to be overly cautious when we make estimates about uncertain events. Illustration: You’ve invited 100 guests to a backyard barbeque party. You

Framing occurs when we misidentify the problem, undermining the entire decision-making process. Illustration: There is a small fire in your kitchen over your stove. You

Overconfidence makes us overestimate the accuracy of our forecasts. Illustration: You just started a fitness routine and you dropped 3 lbs in 3 days. That

Confirmation Bias leads us to seek out information supporting an existing predilection and to discount opposing information. Illustration: You’ve just had a heated discussion with

The Sunk Cost decision-making trap inclines us to perpetuate the mistakes of the past. Illustration: Dating relationships. We’ve all seen it. A couple that is

The basic explanation of this trap is that we are biased towards maintaining the current situation, even when better alternatives exist. Illustration: We have a

As we’re looking through the 8 psychological decision making traps, we’re starting off with what we call anchoring. Anchoring is what we do when we

In the front of our office building in the lobby area, we have a lot of beautiful typographic signage with really powerful quotes. For instance,

I’m in a peer advisory group with some other local business owners, and we have a saying that gets thrown around in our monthly meetings