From CEOs to private investors, people tend to place far too much emphasis on their own instincts when making decisions, even though the results are often disastrous. Behavioral economist David E. Adler examines why people make life-altering decisions based on intuition, habit, gut feelings, urges or snap judgments instead of using analytical reasoning, a far better tool for complex decision making. In this absorbing, eminently readable book, Adler offers many fascinating case histories that demonstrate the dangers of intuitive thinking. After weighing the evidence carefully, getAbstract finds that investors, managers and other decision makers will certainly benefit from reading his report.
In this summary, you will learn
- Why human intuition developed
- When it is and is not useful
- Why behavioral economics says analytical reasoning is best for complex choices.
About the Author
David E. Adler writes for Financial Planning, and has been published in The New Republic, Barron’s and Psychology Today. He is studying wealth managers’ tax awareness under a Chartered Financial Analysts Institute Research Foundation grant.