EPISODE 9: Why Humans are Poor Decision Makers: Meet the Cognitive Bias

In order to survive the deluge of data and myriad of decisions we make every day, humans adopt short-cuts, or heuristics. Unfortunately, we often rely on flawed biases and stereotypes resulting in poor decisions. In an effort to make sense of it all Steve sits down with Shari Belitz, founder of Shari Belitz Communications. The two discuss how psychology impacts litigation and settlement. As a mediator, Steve discusses how it is important to encourage parties to slow down their thought process and assess the value of their cases in a deliberative manner. Shari discusses how psychology impacts litigation and highlights the “reptile theory” of litigation. Steve invents a new game for Shari to demonstrate a particular bias and the two discuss how equiprobability bias, base rate fallacy, status quo bias and endowment effect can impact parties’ assessment of their cases. Shari focuses on how “anchoring’ is not limited to negotiations, but also can impact trials. Tune in to see whether Steve correctly assesses whether elevators or taxis present a greater risk in New York and what Shari thinks about the fact he is more likely to put down a book than leave a movie theater.