The Monty Hall Problem in Digital Transformation: Overcoming Cognitive Biases
Despite aiming for rational decisions in digital initiatives, we often fall prey to cognitive biases like the sunk cost fallacy and the tendency to stick with initial choices, as illustrated by the Monty Hall problem. Recognizing these ingrained habits is crucial, especially when models or projects aren't yielding desired results, prompting the need to question assumptions and be willing to "switch doors." Distinguishing between productive persistence and the trap of sunk costs is a key skill in navigating complex digital landscapes.
Apr 13, 2025
Uncertainty, Behavior, and the Limits of Rationality
Better decisions often rely on data, but real-world scenarios involve uncertainty and reactions to others, where behavioral science and bounded rationality become crucial. A recent session explored this by asking graduate students to model such situations, moving from intuitive thought exercises to formal mathematical representations. The diverse models created highlighted that computational modeling is not just technical but also about framing and understanding the emergent behaviors arising from local interactions and constraints.
Apr 8, 2025