Managing Complexity, Uncertainty and Irrationality

By November 20, 2014 Blog No Comments

by Emre Soyer

The world of management, finance and economics is built on the foundation that decision makers are essentially rational, sophisticated and self-serving. In reality, however, there are two issues that challenge that assumption. First, our rationality is limited; behavioral economists and psychologists have convincingly demonstrated that our judgments and decisions are often prone to mistakes, biases and systematic errors, which inevitably lead to losses and shortfalls. Second, the economic and social world we live in is getting increasingly complex and uncertain. It is hard for us to adapt to such rapid progress and keep making good judgments and decisions.

Discussing complexity, uncertainty and irrationality in business and life and also examining their roles in management, communication and negotiation are hot topics currently.