The Decision Lab

We rarely make “perfect” decisions – and that’s okay. Bounded rationality is the idea that, as humans, we don’t have unlimited time, knowledge, or cognitive capacity to analyze every possible choice. Instead, we satisfice—we choose options that are good enough rather than perfectly optimal. This isn’t always bad. Bounded rationality helps us make quick, functional decisions in complex environments. But it also makes us vulnerable to misleading marketing, short-term temptations, and suboptimal choices. Recognizing these limitations helps us make better decisions—or at least question them before acting. Interested in learning about bounded rationality? Read the full article on our website: https://lnkd.in/edaGV3VA #behavioralscience #cognitivebias #behavioraleconomics #behavioraldesign #psychology

When in doubt, map it out! 🧠✨ Ever feel overwhelmed by a big decision—whether it’s a career change, a strategic business pivot, or even planning your next big project? Sometimes, the best way forward isn’t a straight line—it’s a map. Mind mapping is a powerful visual tool that mirrors the way our brains naturally think—non-linearly, associatively, and creatively. It helps break down complex ideas into clear, structured components, revealing connections we might not see otherwise. Imagine you’re considering a career change. Instead of getting lost in endless pros and cons lists, try mapping it out: 🌟 Start with “Career Change” in the center. 🔍 Branch out into key areas: Skills, Industry, Benefits, and Job Market. 📌 Add sub-branches—specific roles, salary ranges, and transferable skills. This technique isn’t just for personal growth—it’s been used by visionary thinkers like Leonardo da Vinci, cutting-edge businesses optimizing operations, and even medical students to improve retention So, next time you’re stuck, ditch the scattered thoughts and try mapping them instead. It might just be the breakthrough you need. Interested in trying mind mapping? Get the full picture on our website: https://lnkd.in/d9SsPRnj #MindMapping #Productivity #DecisionMaking #Innovation #CareerGrowth

Can AI and behavioral science curb fraudulent underreporting—without unfairly penalizing legitimate claims? A new study featured in BPP just put this to the test. Researchers combined machine learning with behavioral nudges to increase honest disclosure in unemployment claims. The result? Without AI targeting, nudges had no significant impact. But when targeted at claimants predicted to underreport earnings, nudges doubled disclosure rates. 💡 Some key points: 1. Social norms, impact on others, and audit warnings were the most effective nudges. 2. The intervention led to potential savings for public agencies. 3. Ethical AI can nudge behavior without restricting freedom of choice. This study is a blueprint for how data science and behavioral insights can drive better policy outcomes—but also raises ethical questions about algorithmic decision-making. How do we balance effectiveness with fairness? Take a look at the full study by Oliver Hauser, Mike Greene, and Katherine DeCelles: https://lnkd.in/e9XnQw5m #AI #BehavioralScience #PublicPolicy #EthicalAI #Nudging #MachineLearning

Have you ever hit a roadblock in a project and weren't sure how to move forward? Maybe it's time to try on a new hat. 🎩 Not sure what we mean? Swipe through the excerpt below or check out the full article by Isaac Koenig-Workman on the TDL website: https://lnkd.in/eVGrpHj6

By now, you've almost certainly heard of the Agile approach to project management, if you're not already using it. As the name suggests, this methodology has gained popularity for the way it helps teams adapt and respond quickly to changes. But one benefit of Agile that isn't talked about as often is how it shields projects from the effects of cognitive bias. In this piece for TDL, Natasha Hawryluk explains how biases often skew project management decisions, and how methods like Agile can help. #projectmanagement #agile #decisionscience #management #behavioralscience https://lnkd.in/eJRc92xd

True cognitive bias or statistic artifact? Infamously, the Dunning-Kruger effect describes how people with limited knowledge or ability tend to see themselves as skillful, while those who are more competent doubt themselves. But is it true? Over the years, scientists have called into question the legitimacy of the Dunning-Kruger effect. Despite these doubts, it has remained a hot topic, generating endless search results with new articles published every month. Read about the history and the controversy of the Dunning-Kruger effect here: https://lnkd.in/e-spt74g

We use incentives as a tool for behavior change all the time. Whether that means promising ourselves a post-workout treat ☕ or providing financial incentives to entice the public to switch to EVs 🚗. The reason why is obvious: people like stuff. Surely, it can't hurt to offer them some cool stuff in exchange for performing some desired behavior. Well, not so fast. While it's true that incentives can often spur people to do something, they can also backfire. Research shows that adding extrinsic incentives into the mix can sometimes "crowd out" people's intrinsic motivations, which tend to be stronger and more durable. Read the full article here 👉 https://lnkd.in/eKihwYFQ

Ever noticed how you suddenly see things everywhere once they’re on your mind? Like that one rare car color that you thought only you had, suddenly it’s everywhere! This is exactly how top-down attention works. Other times, we are guided by the bottom-up process. Something catches our eye out of nowhere, like a bright pink sweater in the middle of a department store display — pulling our attention, even though we weren’t looking for it. Why is this so important? Well, for designers and product managers alike, knowing how these attention mechanisms work can make all the difference in a product’s success. How do we strike the perfect balance? Read Preeti Kotamarthi's article to get an idea: https://lnkd.in/exG43sWi #UserExperience #UXDesign #ProductDesign #BehavioralScience #DesignThinking #DigitalDesign

Have you ever been guilt-tripped by an app spamming you with notifications that your streak is about to end? Or have you ever tried to click out of a pop-up ad before — only for the “X” button to still send you to the ad’s website? How about when you’re about to book a flight but realize just in the nick of time that the website had “preselected” a $100 upgrade for you? These are three common (and extremely irritating) examples of dark patterns: misleading techniques in digital design that trick users into making unintended decisions. Discover more of these tactics companies may be using "behind the screens" on our website: https://lnkd.in/enf9_3qZ

Why don’t we always make the "right" choice? And… how do we even define the optimal choice? Decision theory may help to answer these questions, exploring how individuals, groups, and systems make choices—especially under uncertainty or complexity. Drawing from psychology, economics, statistics, and neuroscience, it helps us understand the gap between how we should make decisions (normative decision theory) and how we actually make them (descriptive decision theory). We like to think we’re rational—carefully weighing pros and cons with perfect logic. But in reality, our decisions are often shaped by biases, emotions, and mental shortcuts more than we realize... but does that always mean our choices are bad? Well, not quite. 💡 To read more about decision theory and how it shapes our daily lives, check out the full article here: https://lnkd.in/enEAUrEt #DecisionMaking #BehavioralScience #Psychology #CognitiveBias