No matter which model you use, you need to know and avoid the decision$-$making traps that exist.

Overconfidence bias occurs when individuals overestimate their ability to predict future events.

Hindsight bias is the opposite of overconfidence bias, as it occurs when looking backward in time where mistakes made seem obvious after they have already occurred.

Anchoring refers to the tendency for individuals to rely too heavily on a single piece of information.

Framing bias refers to the tendency of decision$-$makers to be influenced by the way that a situation or problem is presented.

Answer the following Discussion Questions:

Describe a time when you fell into one of the decision$-$making traps. How did you come to realize that you had made a poor decision?

How can you avoid escalation of commitment?

Share an example of anchoring.

Which of the traps seems the most dangerous for decision$-$makers and why?