Another benefit is the potential to find patterns.

we often rush to conclusions based on representative categories in our mind, neglecting possible alternatives.

In deciding, people often start with a specific piece of information or trait (anchor) and adjust as necessary to come up with a final answer. The bias is for people to make insufficient adjustments from the anchor, leading to off-the-mark responses. Systematically, the final answer leans too close to the anchor, whether or not the anchor is sensib

The halo effect also works in reverse, as the press points out the shortcomings in poor-performing companies. The press’s tendency to focus on extreme performance is so predictable that it has become a reliable counter-indicator.

planning fallacy.

Boeing’s problems with the 787 are symptomatic of the first decision mistake: embracing a strategy without fully understanding the conditions under which it succeeds or fails. Outsourcing is not universally good. For example, outsourcing does not make sense for products that require the complex integration of disparate subcomponents. The reason is

most agree that three conditions must hold to make a claim that X causes Y.

Take the example of mergers and acquisitions.

The first is that X must occur before Y.