Knowledge Base

The psychology of regret: how inaction affects our sense of self

We all have experienced regret, perhaps after making a hurtful comment or acting in a way that later turns out to be harmful. Regret is a feeling of sadness, repentance, or disappointment at something that you have done, or failed to do. Psychologists Shai Davidai and Tom Gilovich have investigated the psychology of regret, illuminating a … Read More

Projection bias: how your “emotional temperature” impacts your decisions

We constantly make decisions that will affect our lives in the future. That future can be one hour from now (what’s for lunch?) or one year from now (should I hire an assistant?). Unfortunately, the brain has a hard time imagining what our future selves will need. Instead, it takes mental shortcuts and makes choices … Read More

The impact of the ambiguity effect on decision-making

When something is described as ambiguous, it means that it is confusing, unclear, or open to different interpretations. Entrepreneurs face ambiguous situations all the time; it’s the nature of the business. For example, entrepreneurs make decisions about pricing, marketing, vendors, and finances that don’t have certain outcomes. In addition, entrepreneurs often have to make choices … Read More

How the end-of-history illusion prevents you from shaping your future self

“Where do you see yourselves in five years?” Tough question, isn’t it? It’s hard to imagine where we will be in five days, let alone five years. And yet, most people believe that their personalities, work situations, and values won’t change much in the future, even though they have changed tremendously in the past. This … Read More