The Tyranny of Shortcuts and Memory Accounting in the World of Decisions

This article explores the psychology of decision-making, focusing on the phenomenon of the "tyranny of the shortcut." The author explains how the mind uses System 1 to rapidly solve complex problems through the mechanism of substitution. The text discusses the differences between the experiencing and remembering selves, pointing to the role of the peak-end principle in retrospectively evaluating events. The reader will learn how prospect theory and loss aversion influence choices under risk and what pathologies, such as the planning fallacy and sludge, hinder organizational functioning. A key element is the presentation of "rational prostheses"—methodologies such as friction auditing and pre-mortem analysis, which allow for the systemic mitigation of cognitive biases in business and law. This is an essential compendium for leaders striving for conscious management of decision-making processes.