Strategic Shifts - Monday, September 1, 2008 15:04 - Comments

MP: Knowledge of cognitive biases needed to sustain competitive advantage

THE GIST

Gist: Neuroeconomy, neurofinance, behavioral economics and so on… All the fields at the crossroad of cognitive or neuro- sciences and other scientific disciplines are increasingly productive. The academics in these fields seek to understand how the brain is processing the information needed to make a decision. As it turns out, we must do with scores of “Cognitive Biases” that stem from our brain design and shape all of our perceptions and choices.

Impossible to eliminate, hard to even consciously correct, you can no longer ignore them: an increasing proportion of businesses have incorporated them into their decision making processes (ie these processes have been designed to correct any bias). If you don’t do it as well, you will soon lag your competitors.

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