Reason, Emotions, Intuition

Abstract

There is a growing scientific literature on the role of managerial intuition in decisions: The core finding is that intuition functions best with experience. After years of knowing their industry, managers come to recognize patterns and cues that click into place. Moreover, experienced managers can simplify their decisions by knowing what criteria to ignore in their consideration. This chapter synthesizes this growing knowledge by showing managers the benefits and limits of relying on their intuition.