Humans are really bad at making decisions. Every time I say it, people look a...

Jefferey Cave - 2014-05-27 08:29:10-0400 - Updated: 2014-05-27 08:29:10-0400

Humans are really bad at making decisions. Every time I say it, people look at me like I'm nuts. From staff scheduling, to project estimation and planning, Humans get it wrong.

Maybe if someone else says it, people will get the point.

Rules vs Discretion Revisited: The Insularity of Economists

Theodore Minick - 2014-06-01 12:42:51-0400

"If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason reject every kind of government action" ~ Ludwig von Mises

Out of 100 decisions, 99 might be wrong. It's that 1 right one that matters, though, and when you have a single entity making the decisions, the likelihood of getting that one correct decision drops precipitously.

Jefferey Cave - 2014-06-01 13:03:39-0400

While I am strongly in favour of competitive entities, a given entity can only make a single decision. Under these conditions, I find it desirable that the decisions be made in a consistent, and well defined manner. That way if any improvements can be made to the decision making process, they can be identified and corrected.

Theodore Minick - 2014-06-01 13:09:50-0400

Then I would suggest teaching logic to CEOs (I assume they already understand economics). ;)

Jefferey Cave - 2014-06-01 13:29:47-0400

My couple of interactions with CEOs have shown they have a strong background in the humanities (including logic). I worry about middle management...

Theodore Minick - 2014-06-01 13:31:09-0400

I don't think I can help you there.

Jefferey Cave - 2014-06-01 14:00:27-0400

ha ha...