( Let’s Not Make A Deal: An Empirical Study of Decision Making in Unsuccessful Settlement Negotiations, Randall L. In 2008, a group of researchers published the results of a major study that reviewed some 40,000 civil cases in the State of California to determine whether the parties who engaged in settlement negotiations made the right decision. In mediation, understanding predictably irrational behavior can be a helpful tool. We can identify and anticipate it before it happens. Perhaps most importantly, certain irrational thinking is predictable. For example, while we think of ourselves as being rational actors, social scientists have demonstrated time and again that we are in fact highly irrational decision makers prone to making “mistakes.” Further, we are generally unaware of these irrational tendencies. Many of the findings in this field have been revolutionary, radically changing our views about human behavior. Behavioral economists use scientific methods to analyze the psychological, cognitive, emotional, cultural and social factors that impact our decision making. Behavioral economics is an emerging field that draws from a variety of disciplines to better understand how people make economic decisions.
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