Wednesday, May 13, 2009

Value based decisions....

Choices consist of options and a decision is the selection of one of the choices. Here's the part that most people fail to understand that a decision is based on the comparison of values and the selection of which one has the highest value at the time. you can also think of it as comparing risk versus reward.

Imagine an imaginary "pro and con" list... that's basically how decisions are formed. You assign value to each side until you feel comfortable deciding. Now imagine an old school scale, the kind that uses the balancing of two objects to determine the heavier object. And now relate that to how a decision is decided.

On one side of the scale is option A and on the other side is option B. Based on our values of A or B, we will determine which one works for us at that moment and potential act on it. Certain factors influence the value we place on things... time, energy, etc, but it's the value that determine our decisions.

Since everyone comes from different backgrounds and has had different experiences, we each place different values on different things. With that being said, people actions, being based off their own unique value set, are impossible to be judged.

If someone doesn't feel like going out, it's because the value they've placed on staying home is greater than the value they place on getting ready and going out. Similarly, if someone decides to take a risk, it's because they've taken risks before and the value they place on the potential positive outcomes outweighs the value they place on the potential negative outcome.

In that last example, it's hard to tell a shy guy who has never taken a risk to take a risk if he's never felt the power of the reward. The value he places on rejection is very high and the value he places on the safer choice is also very high.

Something as simple as lunch can be used as an example. Price, distance, quality of food, last time you had it, convenience, etc... all factor into your decision of where to eat. The value you place on these factors help shape your decision.

Then you can look at more serious decisions. Look at that mayor of NY who was caught using prostitutes. Is he wrong for doing it? Probably... but it is easy to justify, sure. The value he placed on sex was higher than the potential of getting catch. Look at a woman who has to decide to leave their boyfriend. She has to decide if the value she places on time invested is worth more than the value she places on potentially being single. People have different values for these concepts based on past experience.

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