Farsighted: How We Make the Decisions That Matter the Most

When facing a decision that involves multiple, independent variables, people have a tendency to pick one “anchor” variable and make their decision based on that element.

By far the best theory for describing the principles of our irrational decisions is something called Prospect Theory. Created in 1979 by the psychologists Daniel Kahneman and Amos Tversky, prospect theory describes how people choose between options that involve risk, like in a negotiation. The theory argues that people are drawn to sure things over