Biased judgment and decision making is that which systematically deviates from the prescriptions of objective standards such as facts, logic, and rational behavior or prescriptive norms. Biased judgment and decisionmaking exist in consequential domains such as medicine, law, policy, and business, as well as in everyday life.
Investors, for example, tend to hold onto falling stocks too long and sell rising stocks too quickly.
Employers exhibit considerable discrimination in hiring and employment practices.
At the individual level, people who exhibit less decision bias have more intact social environments, reduced risk of alcohol and drug use, lower childhood delinquency rates, and superior planning and problem-solving abilities.
Debiasing can occur within the decisionmaker. For example, a person may learn or adopt better strategies by which to make judgments and decisions.
Debiasing can also occur as a result of changes in external factors, such as changing the incentives relevant to a decision or the manner in which the decision is made.
There are three general approaches to debiasing:
Other solutions exist from which we can learn, but debiasing solutions are unique to fields, organizations, teams, etc… so it helps to take tips from diversity and inclusion efforts, and innovate new strategies.