This blog entry is a continuation of the previous one aimed at understanding the decision-making process, particularly with regard to conscious versus unconscious processing and the emphasis of intellectual reasoning versus intuition. In my previous entry I mentioned that we all have blind spots and have inevitable errors in judgment. But I also believe that understanding how these come about can help minimize their frequency.
Early in his creation of the discipline of psychoanalysis, Freud defined the term transference.

Perhaps because we live in a capitalist society, the heaviest focus on our ability to make good decisions, lies in the realm of economics. Nobel laureates ponder not just the basis for individual economic decisions, but also for those made societally—like those leading to the recent great recession. Robert Shiller, Sterling Professor of Economics at Yale, and a recent Nobel winner, readily acknowledges that there are vastly different opinions on whether economic decisions are made “rationally”, “emotionally”, or some combination of both. The bottom line: nobody really knows. But Shiller favors an approach that addresses the complexity of human behavior and motivation. I was glad to see he cites recent neuroscience evidence that both reason and emotion are utilized during the decision-making process. His conclusion: More work needs to be done. And he advocates involving other disciplines, including the social sciences.

“Human life in common is only made possible when a majority comes together which is stronger than any separate individual and which remains united against all separate individuals.” Sigmund Freud, Civilization and Its Discontents, (1930) When Freud says we must be united against separate individuals, he is not speaking of individual productivity, ambition and creativity. Rather he speaks...