The Transformative Ideas of Daniel Kahneman
Hidden Brain
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The Impact of Noise on Decision-Making
This chapter examines the unpredictable variability in decision-making within the insurance and legal sectors, revealing that actual decision variability can be significantly higher than expected. The discussion highlights how extraneous factors, such as emotional states and external conditions, can lead to inconsistent judgments among professionals, like underwriters and judges. Through various examples, it showcases the serious consequences that such 'noise' can have, influencing critical outcomes and financial implications for individuals and organizations alike.
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