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Showing posts from November 30, 2013

Trust-your-gut Based On Expertise May Yield Better Decisions

An experienced entrepreneur or small business owner understands having to make quick decisions based on incomplete information.  In fact, it's a way of business in small operations where there is rarely time, staff, or resources to research decisions before they must be made.

"It turns out there are conditions where using intuition is a good way to make the right decision," said Michael Pratt, of Boston College's Carroll School of Management. "What we found demystifies a lot of the information out there that says intuition isn't as effective as using an analytical approach."

Testing intuition against analysis, Pratt and co-authors Erik Dane, of Rice University and Kevin W. Rockmann, of George Mason, found that people can trust their gut and rely on intuition when making a broad evaluation in an area where they have in-depth knowledge of the subject.

Intuition has long been viewed as a less effective approach to critical reasoning when compared to the merit…