Using Heuristic Problem-Solving Methods for Effective Decision-Making
Heuristics are essentially problem-solving tools that can be used for solving non-routine and challenging problems. In this article, we review heuristic method as a practical approach for a short-term goal, such as solving a problem.
Overcoming Sunk Cost Fallacy: Get Better at Decision-Making
One of the first things you learn at an economics course is that you should never take irrecoverable (sunk) costs into account when you need to decide upon present or future investments. But since humans are not the most rational beings, we often forget that basic rule and let the past “investment” distort our judgments. This cognitive tendency is known as “sunk cost fallacy” and it can massively undermine both your personal and business decision-making.