Deloitte Review - Issue 18

Humans are not perfect. We overgeneralize from our personal experience, often neglect logical analyses, and are generally overconfident in our judgments. These biases extend beyond our personal lives to impact economic, regulatory, and management decisions more than we may realize. Concepts of modern psychology and behavioral economics arising from the work of Daniel Kahneman, Richard Thaler, Cass Sunstein, and others, have begun to offer tools enabling us to better shape programs, policies and products – and ultimately to design our technological future – in a human-centric spirit.