WHY DO CLEVER PEOPLE MAKE WRONG DECISIONS?

Emotions and Decisions

A significant part of the brain is under the influence of automatic processes as against conscious thinking. Therefore, the processes realised in the brain are mostly affected by emotions. Human brain has been structured during the evolutionary process for orienting to what facilitates survival and escaping from what seems harmful. The human brain processes the reactions and decisions in two spearate regions, one being the older “feeling brain” and the other the “thinking brain” which investigates the subjects in hand. The older structure at the base of the brain is fast, strong but only reactionary and therefore “thoughtless”. In contrast, the “thinking brain” at an upper position, is slow and weak but regards itself as “clever”.

Humans believe that their decisions on buying and investing are logical. However, perception, a thoroughly subjective process, interferes in evaluating the cost and benefit relationship; and the decision is distanced from being logical. Behavioural finance investigates the system of the deviations during human decision making.

In this speech, the effects of emotion on the decisions regarded as logical will be explained with reference to the evelotion of the human brain, and emphasis will be made on the difficulties of living with the primitive brains we possess.

In this program the attendees will learn through an entertaining voyage:

■  The effect of emotions on the decision making process
■  The psychological ad biological bases of the mistakes made in daily life
■  That humans predictably behave irrationally
■  The outcomes of our self confidence
■  The importance of emotions in managing humans

Thus, they will gain an insight into the systematic errors made by humans, and will be able to take more effective decisions in human relationships and when implementing managerial tasks.

Duration of the presentation: 1-2 hours