Introduction and 1 Overview: Judgments Decisions, and RationalityCHAPTER OUTLINE INTRODUCTION 3 BOUNDED RATIONALITY 5. WHAT IS RATIONALITY? 4 AN OVERVIEW OF THE SUBSEQUENT CHAPTERS © INTRODUCTION Everyone complains of his memory, and noone complains of his judgment. (La Rochefoucaul You've gotta make decisions. You ve gota keep making decisions, even if they're wrong decisions You lena... if you don’t make decisions, you're staffed. (Joe Simpson explaining his Pic escape from a mountaineering accident, in the decumentary movie ‘Touching the Void) ld, 1678) fed to making judgments and decisions of one sort or another, he road, deciding to quit your job and live the dream, or choos, ‘Although we often conflate the terms judgment and ations or estimates whereas deci e make are, of Our waking lives are largely devot whether judging ifit is safe to cross ing what colour to paint your apartment ‘decision’ in everyday language, judgments are essentially eval fons indicate an incention to pursue a particular course of action. ‘The decisions w' formed by our judgment. ‘of judgments and sses involved rhaps you will even recognise ¢ Pod to random shutfle, yet it seems to be playing certain Sn. more than others. Is there something, wrong with You! iPod's randomising device? in fact, pre asional ‘streaks’ in outcomes are exactly what should be expected in random sequences, discussion with someone who has avery scongly held belief on amount of evidence that wil change his mind. decisions that it might seem hard to believe that in the ways we think about them. However, con- hese situations): course, in ‘There are so many types there could be any common proces sider the following occurrences (per @ You have set your il You are having 2 lively the subject. It seems to you that there isn “There are a few purchases you have been thinking of making, but have held off fom doing so on the grounds of expense, Howes! today you have just made a much larger expensive purchase, and shortly mee rare also made the smaller purchases ou hat Ween thinking about. Somehow, the large purchase seems to have made it easier 10 make the smaller purchasesWHAT |S RATIONALITY? proc piensa acon OMT ‘tasenaiy® Srteo em pele canbe Some tara me SoS pty er ee Tea pene ny ence ere er corso mata ranean ak ‘gure 13. 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