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< 1 minute(s) to read

  • Being Human
  • We're talking about: behavior economics, neuroscience, psychology
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How we make decisions

< 1

When it comes to decision making we’re not as rational and objective as we like to think. That’s because humans have two decision-making systems: one is rational while the other is intuitive.

The rational system is good at analyzing problems and coming up with logical answers. It’s also “lazy” and can only handle one task at a time.

The intuitive system is fast and responsible for most of our decisions. Kinda like a hidden autopilot inside us.

Want to feel the difference between the two?

Let’s try an exercise try to multiply two times two. Do you know the answer immediately? Yes you do. Did you need a lot of thinking to get there? Nope!

Now try to multiply 17 times 26. No calculator, no paper. You begin to feel the wheels turning, don’t you?

Actual thinking is hard which is why our brains collect preset answers that help us process things quickly. This fits the bill for things like driving, when we can’t spend too much time thinking about which pedal to step on.

But when it comes to making important decisions taking shortcuts can manifest as cognitive bias that cloud our judgment.

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