In forecasting happiness I overviewed some of Daniel Kahneman's research into affective forecasting. This month's Strategy+Business has a nice interview with him sharing more of his thoughts.
Here are some highlights, with all the credit going to MIT interviewer Michael Schrage and to HBS student Matt Mahoney: (I highly recommend reading the whole article, free subscription).
-You can always find an evolutionary quotation for anything. But the question is whether its functional, which is not the same as being evolutionary. There might be some environment in which its dysfunctional, but mainly its inevitable.
-Theyre not trying to learn from their own mistakes; theyre not investing the smallest amount in trying to actually figure out what theyve done wrong. And thats not an accident: They dont want to know.
-But, you know, theres also the issue of perception, which links to intuition. Perception evolved differently than either intuition or cognition evolved.
Matt's final comment is great, "This hits on so many themes from my cognitive science days at UCLA, plus, more crucially, every single class I'm taking (finance, reporting & control, lead, technology operations mgmt.)
His question for me is: "If emotions get in the way (b/c it overweights), how can we use emotion as a tool to build intuition? to blend intuition and reasoning?" Matt, here is one idea (see Finance with Feelings).
As far as it's implications for marketing (see Neuromarketing to Your Mind).