Making rational and irrational decisions

Abstract

This chapter is written to provide you with the. op- portunity to audit your own decision making and identify • the biases that affect you.. A number of problems are presented that allow you to examine your problem solving and learn how your judg- ments compare to the judgments of others. The quiz items are then used to illustrate 13 predictable biases to which rnanag-ers are prone, and that fre- quently lead to judgments that systematically devi- ate from rationality.