A Rational Method for Making Trade-offs

Some decisions are easy. If you want to fly from New York to San Francisco as cheaply as possible, you will find the airline that offers the lowest price and buy a ticket.

You have only one goal, so you only need to make one set of comparisons. But having only one goal, as every decision-maker knows, is a rare luxury. Usually, you pursue many different purposes at the same time.

Yes, you want a low price, but you also want a convenient departure time, a direct flight, a runway seat, and an airline with an outstanding safety record. And you’ll want to earn miles with frequent travelers on one of your existing accounts. Now the decision is significantly more complicated, and you have to make compromises.

Making wise compromises is one of the most critical and complex decision-making challenges. The more alternatives you think of and the more goals you pursue, the more exchanges you will need to make.

However, the sheer volume of compromises is not what makes decision-making difficult, and that is the fact that each goal has its basis for comparison.

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