A Flaw in Human Judgment : A Book Review

Houna, Safaa (2025) A Flaw in Human Judgment : A Book Review. E-CONOM, 14 (1). pp. 143-148. ISSN 2063-644X

Preview

Text e-conom-14evf-1sz-2025-01-143-148.pdf - Published Version Available under License Creative Commons Attribution Non-commercial Share Alike. Download (591kB) | Preview

Abstract

The book Noise: A Flaw in Human Judgment by Kahneman, Sibony and Sunstein (2021) examines decision variability, referred to as noise, as a significant yet often overlooked source of error in human judgment. Drawing on empirical case studies from law, medicine and finance, the authors demonstrate how noise leads to unpredictable inconsistencies, re-sulting in substantial economic and societal costs. To address this issue, they introduce the concept of Decision Hygiene, which refers to structured decision-making procedures, standardized evaluation criteria and the use of algorithmic support to reduce random variability. While the book convincingly highlights the prevalence and impact of noise, several open questions remain. These include the practical implementation of Decision Hygiene, its relationship with nudging strategies and the longterm effectiveness of the proposed measures. Furthermore, a more indepth discussion of the potential benefits of variability and the limi-tations of algorithmic decision models would have added valuable nuance. Nevertheless, Noise makes a significant contribution to research on decision making and offers practical insights for improving decision architecture in business, public policy and administration.JEL-codes: C91, D03, D70, D81, D91, M54

Actions (login required)

Edit Item