Tuesday, May 09, 2006

Psychological Bias In Decision Making

In this McKinsey Quarterly article there is a discussion about how psychological biases can impact exit strategies (I think you may need to register to view the link). I found it most interesting for the biases themselves. The article itself describes "The Confirmation Bias" and "Anchoring & Adjustment". But you may need to follow these links to Wikipedia for "The sunk-cost fallacy" and "Escalation of Commitment" (which have very similar roots).

No comments: