Imagine this scenario: after a meeting, you’re trying to get home quickly. Calling an Uber seems like the fastest option, so you do. However, as you wait, you notice the car is stuck in traffic. You could cancel and take the train, which might be faster and cheaper, even with the cancellation fee. Yet, you decide to stick with the Uber because you’ve already invested time waiting. Unfortunately, you end up getting home later and paying more than if you had taken the train.
We often believe our decisions are rational, but science suggests otherwise. In this situation, the sunk cost bias influenced the choice. This bias makes us stick with something we’ve invested time or money in, even if it’s not the best decision for our future well-being.
Every day, we make numerous decisions. Some, like choosing breakfast, are minor, while others, like accepting a new job, can significantly impact our lives. Making these big decisions can be challenging, and emotions or circumstances might lead us to poor choices.
Fortunately, by understanding what affects our decision-making and using certain techniques, we can improve our choices. Emotions such as anger, fear, and sadness can cloud our judgment. For instance, a 2016 study found that participants who recalled an anger-inducing event made riskier decisions in a simulated task compared to those who recalled a sad event or their normal routine.
Other research indicates that sadness can influence financial decisions, making us willing to pay more for something. Fear can also lead to illogical choices; for example, someone afraid of flying might choose to drive, despite higher driving-related death rates over equivalent distances.
So, how can we make better decisions? One strategy is to make important decisions in the morning. Studies show that people generally make slower but more accurate decisions in the morning and faster but less accurate ones in the evening. If faced with a big decision late at night, consider “sleeping on it” and deciding in the morning.
Another technique is to distance yourself from the situation. It’s often easier to solve others’ problems than our own, a phenomenon known as Solomon’s Paradox. The biblical King Solomon was renowned for his wisdom in advising others, yet he faced personal issues that led to his kingdom’s decline. People tend to be wiser about problems they aren’t directly involved in. By adopting a third-person perspective, known as wise reasoning, you can better recognize others’ viewpoints, understand your knowledge limitations, and reach compromises.
Additionally, consider mindfulness meditation to enhance decision-making. A 2014 study found that just 15 minutes of mindfulness meditation before a decision-making task increased resistance to sunk cost bias, helping individuals make the best choice for their future success, regardless of past actions.
Making decisions isn’t always straightforward. However, by understanding how factors like mood, time of day, and past events can bias our decision-making, we can train ourselves to eliminate influences that lead to poor decisions and make better choices in our lives.
Engage in role-playing exercises where you and your classmates act out different decision-making scenarios. Each scenario should involve a common bias, such as the sunk cost fallacy or emotional influence. Discuss the decisions made and explore alternative outcomes by applying scientific strategies for better decision-making.
Keep a decision-making journal for a week. Document significant decisions you make, the emotions you experience, and any biases you notice. At the end of the week, analyze your entries to identify patterns and reflect on how you could apply the strategies discussed in the article to improve future decisions.
Participate in a guided mindfulness meditation session. Afterward, engage in a decision-making task or simulation. Compare your approach and outcomes with those from a similar task completed without meditation. Discuss how mindfulness influenced your decision-making process and resistance to biases.
In small groups, discuss personal decisions you have found challenging. Apply the concept of Solomon’s Paradox by advising each other from a third-person perspective. Reflect on how this external viewpoint helps in recognizing biases and making wiser decisions.
Conduct an experiment by making a series of decisions both in the morning and in the evening. Compare the speed and accuracy of your decisions at different times of the day. Analyze the results to understand how time of day affects your decision-making abilities, as suggested by the article.
Here’s a sanitized version of the provided YouTube transcript:
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There’s a common scenario I often find myself in: trying to get home after a meeting. It’s quicker to drive, so I call an Uber. While I’m waiting, I realize the car is stuck in traffic. I could cancel it and take the train, which might be quicker, and even with Uber’s cancellation fee, it would still be cheaper. However, I feel committed to the car since I’ve already invested time waiting, and I would still have to pay that fee. So, I decide to take the Uber. Then, we sit in the same traffic, and I end up getting home later and for a higher price than if I had just taken the train.
We like to think we always make rational decisions, but science shows this isn’t always the case. In not choosing the train, I fell victim to the sunk cost bias, which means we’re more likely to stick with something we’ve invested time or money in, even if it’s not the best decision for our future well-being.
Whether we realize it or not, we make dozens of decisions every day. Some decisions, like what to eat for breakfast, aren’t significant, while others, like whether to take a new job, can have a big impact on our lives. Making a big decision isn’t always easy, and sometimes we might not make the choice that is best for us. Certain emotions or situations can lead us to make poor decisions.
Fortunately, understanding what influences our decision-making and using specific techniques can help us make better choices. Emotions like anger, fear, and sadness can cloud our judgment without us even realizing it. For example, feeling angry can significantly affect our decision-making. In a 2016 experiment, participants who wrote about an event that made them angry made riskier choices in a simulated task compared to those who wrote about a sad event or their normal routine.
Other studies have shown that feelings of sadness can affect our decisions about money, increasing how much we’re willing to pay for something. Fear can lead us to make illogical decisions; for instance, someone with a fear of flying might choose to drive instead, even though the death rates for driving are much higher than for flying over equivalent distances.
So, how can we make better decisions? First, try to make important decisions in the morning. Research has shown that people generally make slower but more accurate decisions in the morning and faster but less accurate decisions in the evening. If you’re about to make a big decision late at night, “sleeping on it” and deciding in the morning may be a wise choice.
Next, distance yourself from the situation. It often seems easier to solve other people’s problems than our own, a phenomenon known as Solomon’s Paradox. The wise biblical King Solomon was sought after for advice, yet he had personal problems that led to his kingdom’s decline. People tend to be wiser about problems where they’re not directly involved. Try to think about a situation from a third-person perspective—this practice, known as wise reasoning, can enhance your ability to recognize others’ viewpoints, understand the limitations of your own knowledge, and reach a compromise.
Additionally, consider mindfulness meditation for better decision-making. A 2014 study found that just 15 minutes of mindfulness meditation before a decision-making task increased resistance to sunk cost bias, helping people make the best choice for their future success, regardless of previous actions.
Making decisions isn’t always easy. However, by understanding how factors like mood, time of day, and past events can bias our decision-making, we can train ourselves to eliminate influences that lead to poor decisions and make better choices in our lives.
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This version maintains the core ideas while removing any informal language and personal anecdotes.
Decision-making – The cognitive process of selecting a course of action from among multiple alternatives. – In psychology, decision-making is often studied to understand how individuals weigh options and make choices under uncertainty.
Sunk cost bias – A cognitive bias that leads individuals to continue an endeavor once an investment in money, effort, or time has been made. – Despite the project’s clear failure, the team continued due to sunk cost bias, unable to abandon the resources already spent.
Emotions – Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience. – Emotions can significantly influence decision-making processes, often leading to irrational choices if not managed properly.
Judgment – The ability to make considered decisions or come to sensible conclusions. – Effective judgment in critical thinking requires evaluating evidence and arguments without bias.
Mindfulness – A mental state achieved by focusing one’s awareness on the present moment, while calmly acknowledging and accepting one’s feelings, thoughts, and bodily sensations. – Practicing mindfulness can improve emotional regulation and enhance decision-making skills.
Strategies – Plans of action designed to achieve a long-term or overall aim. – Developing effective strategies for problem-solving is a key component of critical thinking in psychology.
Choices – The act of selecting between two or more possibilities. – Understanding how people make choices is a fundamental aspect of psychological research.
Reasoning – The action of thinking about something in a logical, sensible way. – Reasoning is essential in critical thinking, allowing individuals to draw valid conclusions from available information.
Influence – The capacity to have an effect on the character, development, or behavior of someone or something. – Social psychology examines how group dynamics can influence individual behavior and decision-making.
Psychology – The scientific study of the human mind and its functions, especially those affecting behavior in a given context. – Psychology provides insights into how cognitive biases can impact critical thinking and decision-making processes.
