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The economic principle I’m exploring is, people generally respond to incentives in predictable ways & institutions are the “rules of the game” that influence choices. My research question to help me study the economic principle is, “What affects our decisions making process?”
The article published in Proquest titled “How ‘Who You Know’ Affects What You Decide” demonstrates this economic principle because it argues that you surroundings and who you associate with take a huge toll on how you make your decisions. It covers the theory that people often second guess their decisions which leads them to over think and results in revising the decision way too many times.
First, a group of researchers studied two group of employees that are from two different companies, and watch closely how they make decisions. They found that “one researcher, studies focused on how engineers solved problems, found that engineers and scientists looking for information were roughly five times more likely to turn to friends or colleagues.”
Second, the study “ recorded each decision maker’s involvement — the nature and duration of their input and the result. Process maps showed that most decisions involved too many people, demanded too much attention from senior management, and were revisited too many times.”
Third, the research “it found that some 60% of the time employees spent on decision making was spent with colleagues whom they identified as either input or advice providers — that is, people who weren’t involved in making the actual decision.”
In my next blog post I will research “How does the brain affects our decision making process?”
I am also researching how your surroundings affect your decisions! However, I love how you incorporated the classroom surrounding and the classmates you surround yourself with. It fits perfectly with the economic principal "people generally respond to incentives in predictable ways" because it shows that people turn to their friends rather than their colleagues for assistance.
ReplyDeleteThis is a very interesting topic. From your research, you suggest that many people (mostly scientists and engineers) turn to peers to solve problems, and maybe to a great extent. Are we too dependent of a society? Mass culture and mass society has resulted in a greater dependency on others.
ReplyDeleteIn your next research, I would suggest citing the University or Research center that conducted this research so your posts will be more reliable and logically appealing.
I think this is an interesting topic because I never thought that having too many people involved in helping to make a decision would complicate the issue and cause problems.
ReplyDeleteFor your next research question on how the brain affects our decision making I would strongly suggest going to a website like psychologytoday.com. I took psychology last semester and we talked a lot about the different factors that go into how an individual ends up making a decision and I think that this website does a great job at summarizing that information.
https://www.psychologytoday.com/blog/the-blame-game/201607/decision-making-made-ridiculously-simple