The psychology behind irrational decisions - Sara Garofalo

Often people make decisions that are not “rational” from a purely economical point of view — meaning that they don’t necessarily lead to the best result. Why is that? Are we just bad at dealing with numbers and odds? Or is there a psychological mechanism behind it? Sara Garofalo explains heuristics, problem-solving approaches based on previous experience and intuition rather than analysis.

Lesson by Sara Garofalo, animation by TOGETHER.

[joseloyamarquez]

"The intuitive answer may not be the right one after all."

^My brain during an exam.

[iprimoonanollie]

for the beginning I chose both guaranteed, after many opened fifa packs I learned that I shouldn't try my chances

[MasterJongXG]

I bet most people are watching this video instead doing their work, what a irrational decision.

[EugeneKhutoryansky]

Irrational decisions go well beyond just the phenomena discussed in this video. Humans are not so much a rational animal as a rationalizing animal. We are very good at coming up with reasons for things that we already want to do.

[tristragyopsie]

I wouldn't flip the coin in ether situation, because I will take a sure loss over a possible greater loss any time
and I will take a sure gain over a possible greater gain if there is an equal chance of no gain at all.

this also explains why I don't understand most pricing today, it's focused on squeezing out more money, rather than having anything to do with the actual product.

I am a mouse, safe cheese is good cheese.

[MindYourDecisions]

I enjoyed the examples in this video. I like to think about irrational decisions like optical illusions in that we perceive the situation incorrectly. Just as we can recognize optical illusions by recognizing the patterns, we can also overcome irrational decisions.

[BeSmarterFaster]

Loss Aversion is a powerful motivator for a great many people. Whenever you are in the position of having to persuade someone, you will often be more effective when you focus your argument on what the other person has to LOSE, rather than something they have to gain.

[hnaku]

What about the irrational decision of watching this instead of studying for my exam?

[jeanamoore]

TED-ED
thanks for breaking it down elementary style.
loved it.

[yuki_ccy]

i chose to flip on the first one and to not flip on the second lmao

[Owlnuss]

Reasons of irrational decisions:
-Aversion fallacy
-Conjunction fallacy
-Anchoring effect

[jadenyuki]

These videos should be watched in all classrooms. Ted-ed is the best teacher I've ever had.😊

[Hecky]

Daniel Kahneman's "Thinking, Fast and Slow" go more in depth on these matters - a very good read!

[tverdyznaqs]

I like that you've used a lot of example tests in this video

[omgfackdehell]

Its actually mainly because i cannot calculate all posible outcomes in that short of a time span and just go for the guaranteed option.

[kaishang]

I'm so used to calculate the expected value that I didn't care what I chose for the two examples. and for the cubes, I immediately excluded b as it contains a, and c as it is longer than a and is with a more wrong frequency of colours.

math is good. quick and correct math is better. replace heuristics with it is even better.

[Geosbudy]

I have been researching and exploring on the basis of decision making process, the effects like cognitive biases, intuition, probability effects and actual data and facts. I'm shocked by how much wrong and blind we can be in many scenarios.

[izzyGO]

For the gameshow, i chose to risk the flip on the first round and stick with 500 guaranteed loss on the second.
For the dice, i chose B because it had more green dice lol
I don't like the idea of not trusting your gut though, i feel like it will lead to indecisiveness and paranoia. I think being able to trust your gut, grow from incorrect choices and learn from your mistakes which then informs your gut decisions later in life is an important skill to hone. Not worrying about what's the most optimal decision for everything.

[TheOswald]

don't gamble...working for every cent is frustrating...but the painful experience will also stop you for buying something you don't need.

[gaganbajwa]

Thank u for uploading this video, I love when we have more material available on utube that talks abt cognitive bias... Thinking fast and slow - Daniel Khaneman is a good read