Every day we're faced with decisions, from the trivial to extremely important.
Too often we simply go with our gut feeling and do what feels right.
The problem with that approach is that it leaves us open to a variety of behavioral and psychological biases that affect the way we think and can lead us to make the wrong choices.
By being aware of of the things that lead us down the wrong path and some ways to get it right, we can make better, more rational decisions.
Searching for the "best" option is usually a waste of time.
People put too much value on having a wide variety of choices.
In fact, according to researchers Simona Botti from the London Business School and Christopher Hsee of the University of Chicago we spend so much time seeking out options that it outweighs any benefit of having additional choices.
When researching options, set a time limit for yourself, and make sure you're not just procrastinating to avoid the decision.
We overestimate how often people act on better information.
People have a tendency to imitate others' choices, even when they get different information.
Berkeley behavioral economist Matthew Rabin extends this further, this effect can be particularly strong and lead us to keep making the wrong choices because we overestimate how much people are acting on better private information, and underestimate how much they're simply following others.
Don't mistake other people's choices for real information in every case.
"Confirmatory bias" makes us overconfident for the wrong reasons.
When presented with uncertain information, people tend to interpret in a way that confirms what they already think or want. This 'confirmatory bias' actually makes people overconfident in their choices without good reason.
If you have a preference for a certain choice because it's easier or more familiar, make sure you're not shaping contrary information to support it.
See the rest of the story at Business Insider