When Making Big Decisions, Avoid Being Tricked By Intuition (Harvard Business Review)


Think twice before you go with your intuition, behavioral management experts say. When making high-stakes decisions such as hiring a prospective employee or expanding a business, “most of us tend to be overconfident in our estimates, [making it] important to allow for risk and uncertainty,” write business professors Jack Soll, Katherine Milkman and John Payne.

Of course, it can be useful to rely on what experts call System 1 thinking, or automatic judgments from our intuitions, but the danger comes when we depend too heavily on System 1 at the expense of logical and rational reasoning. So how do you outsmart your own biases? Read the tips by Soll, Milkman and Payne here.

Bundle Up: How Internet TV May Be Taking a Cue From Bundling Cable Companies (New Yorker)

Ultra HD TV

Instead of killing the love-it-or-hate-it bundle as some had predicted, the Internet may well spawn neo-bundlers. Providers such as Dish and Sony are selling a version of Internet television comprising a smaller and cheaper bundle than those offered by cable companies.

The New Yorker takes a look in “The Dreaded Bundle Comes to Internet TV.”

Airline Fees: You Pack It, You Pay for It (Vox)

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Listen, Thurston and Lovey Howell, you may want to rethink all of that luggage.

Charging for airplane carry-ons may actually be a good thing. Now wait; hear us out. Every pound on a plane wastes more fuel, and more fuel results in more expensive tickets.

Vox examines weighing all bags so that passengers with lighter bags pay less, and conversely, those who bring everything but the kitchen sink pay for what they pack.

Savvy Car Shoppers Look Beyond Sticker Price to Determine Car’s Value (MarketWatch)

CarsDon’t judge a car by its sticker price, some auto experts say. Budget conscious consumers should look beyond a car’s initial purchase price and consider other factors, such as depreciation, expected fuel costs, insurance, and maintenance and repair fees, according to Dan Ingle, a vice president for auto site Kelley Blue Book.

“If I could tell consumers one thing when evaluating a car, it’s that a car that might have a higher initial purchase price could end up being a better deal for your pocketbook over the next five years,” says Ingle.

To demystify the analysis of cost-to-own cars, MarketWatch has broken down the most economical cars by categories like luxury and environmentally friendly. Read the article here.

Starbucks and College Assistance Plan a Challenging Order (The Atlantic)

Starbucks cup256

Inaccessibility to higher education has long been known to contribute significantly to income inequality, so it was no surprise that Starbucks’ announcement last summer to partner with Arizona State University to provide free tuition for its employees garnered media scrutiny. Ten months later, the Starbucks and Arizona State University collaboration offers mixed results from the thousands of Starbucks employees who have participated in the Starbucks College Achievement Plan.

After all, getting employees to enroll in college is just one facet of the problem, argue some critics, who say that ensuring that they will graduate from college is a whole other issue. Striking that balance will be the challenge, admits CEO of Starbucks Howard Schultz, who says, “We’re learning as we’re going.” Read the article here.