tag archive: Daniel Kahneman

Overconfident Narratives Skew Decision Making

In his new book, Thinking Fast and Slow, Princeton professor and Nobel Laureate Daniel Kahneman describes how, as a psychologist serving in the Israeli army, he selected candidates for officer training based on their success in a series of leadership tests. Despite his own and his colleagues confidence in their choices, “the evidence was overwhelming”: they were no good at predicting success at all. Kahneman explains:

You may be surprised by our failure: it is natural to expect the same leadership ability to manifest itself in various situations. But the exaggerated expectation of consistency is a common error. We are prone to think that the world is more regular and predictable than it really is, because our memory automatically and continuously maintains a story about what is going on, and because the rules of memory tend to make that story as coherent as possible and to suppress alternatives. Fast thinking is not prone to doubt. Continue reading

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