Why do we "buy high" and "sell low?"
Why do we gamble and lose money?
Why do we make bad choices all the time.
The below link is a long video where a famous psychologist explains the reason we err in our decisionmaking.
I think this relates well to Southwest's acquisition of AirTran and choices made by the AirTran MEC. It also pertains to the reactions of many SWA pilots to SL9.
The gist of the video is the expected value is equal to the product of
a) the odds of the gain and
b) the value of success.
My opinion is arbitration makes it much more difficult to calculate the
a) odds of the gain and
much much more difficult to calculate the
b) value of success.
But it's human nature. Interesting video. Interesting why sometimes we are our own worst enemy when faced with a choice.
http://www.ted.com/talks/dan_gilbert_researches_happiness.html
Why do we gamble and lose money?
Why do we make bad choices all the time.
The below link is a long video where a famous psychologist explains the reason we err in our decisionmaking.
I think this relates well to Southwest's acquisition of AirTran and choices made by the AirTran MEC. It also pertains to the reactions of many SWA pilots to SL9.
The gist of the video is the expected value is equal to the product of
a) the odds of the gain and
b) the value of success.
My opinion is arbitration makes it much more difficult to calculate the
a) odds of the gain and
much much more difficult to calculate the
b) value of success.
But it's human nature. Interesting video. Interesting why sometimes we are our own worst enemy when faced with a choice.
http://www.ted.com/talks/dan_gilbert_researches_happiness.html
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