Why Smart People (Sometimes) Make Bad Decisions

Daniel Kahneman, Nobel Prize winner and emeritus professor at Princeton University, and Olivier Sibony, professor of strategy at HEC, say that bias isn't the only thing that prevents people and organizations from making good choices. We’re also susceptible to something they call "noise" - variability in calls made by otherwise interchangeable professionals and even by the same person at a different time or day. But the solution isn’t necessarily taking humans out of the equation with artificial intelligence. There are ways to combat noise, and leaders should take steps to do so. Kahneman and Sibony are the coauthors, along with Cass Sunstein, of the book "Noise: A Flaw In Human Judgment."

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HBR IdeaCast
Episode 797

Why Smart People (Sometimes) Make Bad Decisions

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A conversation about identifying what clouds our judgment, and how to fix it.

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May 25, 2021

Daniel Kahneman, Nobel Prize winner and emeritus professor at Princeton University, and Olivier Sibony, professor of strategy at HEC, say that bias isn’t the only thing that prevents people and organizations from making good choices. We’re also susceptible to something they call “noise” – variability in calls made by otherwise interchangeable professionals and even by the same person at a different time or day. But the solution isn’t necessarily taking humans out of the equation with artificial intelligence. There are ways to combat noise, and leaders should take steps to do so. Kahneman and Sibony are the coauthors, along with Cass Sunstein, of the book Noise: A Flaw In Human Judgment.

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Related Topics:

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• Decision making and problem solving

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