Articles

A Bias that Leads to Bad Decisions - Value Attribution

Monday, 12 July 2010 09:49

A growing body of research reveals that our behaviour and decisions are influenced by an array of strong psychological undercurrents.

Scientists have identified five flaws in how we think when making decisions.

They’re hardwired into our thinking process, so we often fail to recognise them.

Third of 5 Flaws: Value Attribution

It takes enormous energy to consciously work through all possibilities and risks when weighing important decisions, so the brain looks for shortcuts. But these shortcuts also present traps because they largely occur without our awareness.

Value attribution serves as a quick mental shortcut to determine what’s worthy of our attention. When we encounter new objects, people or situations, the value we assign to them shapes our future perceptions of them.

If, for example, we see a poorly dressed street performer playing music in a subway station, we assume he’s a struggling amateur with little talent, even when the music is good. These assumptions were proved true when Joshua Bell, one of the finest violinists alive, participated in a field study for the Washington Post.

While Bell, dressed in jeans and a baseball cap, played a $3.5 million Stradivarius, subway travellers rushed by without paying attention. While he certainly sounded far from mediocre, he looked the part—and commuters attributed the value they perceived (appearances) to performance quality.

The Bell experiment illustrates why we may turn down a presentation or idea based on appearances, rumours or any other peripheral value. It also explains why we may blindly follow the advice of someone who has been highly recommended.

Becoming aware of our brain’s tendency to make assumptions can help us prevent disastrous mistakes and missed opportunities.

Source: Coach2Coach newsletter, July 7 2010.