No Harm, No Foul? With Guests Francesca Gino & Dr. Byers "Bud" Shaw

April 15, 2019
It makes some intuitive sense to judge a decision based on its results. But is it always true that a good decision leads to a good outcome, and vice versa?

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

The investment outcome you think about most often may well be short-term performance. But how should you evaluate your portfolio over the long term?

The investment outcome you think about most often may well be short-term performance. But how should you evaluate your portfolio over the long term?

In this episode of Choiceology with Katy Milkman, we look at a bias that can lead to errors in the way we judge our decision-making processes.

  • Katy brings you a story about the challenging early days of organ transplant surgery. Dr. Byers "Bud" Shaw arrived in Pittsburgh in 1981 to work under transplant pioneer Dr. Thomas Starzl. At the time, liver transplants were often unsuccessful, and some of the hospital staff were even petitioning to ban the procedure outright. You'll hear about one particular operation that had Dr. Shaw questioning the viability of liver transplants and his ability as a surgeon. His decision to carry on would have major implications for medical progress. Bud Shaw is the author of Last Night in the OR: A Transplant Surgeon's Odyssey.
  • Next, we place you courtside at a basketball game for a quick experiment. We run two plays that are identical in strategy—but you'll hear them be judged very differently by the players who execute them.
  • Then, Francesca Gino of Harvard Business School joins Katy to discuss the ways that people tend to overvalue the outcome of a decision and undervalue the process that led to the decision. She demonstrates how this bias can lead to flawed and even unethical decision making. Francesca Gino is the author of Rebel Talent: Why It Pays to Break the Rules at Work and in Life.
  • Finally, Katy provides insight on how to better evaluate both the process and the outcome of your decisions, so that you can make better choices in the future.

Choiceology is an original podcast from Charles Schwab.

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Learn more about behavioral finance. 

Jodi's Story: How Can You Find a New Career Later in Life?

How one woman changed careers—and found a path that fit with her values.

The Power of Do-Overs: With Guests Jeff Ryan & Marissa Sharif

When faced with a challenging goal, is it better to give yourself some slack?

Too Much Cash? Tips for Reinvesting Your Money

When it comes to long-term growth, cash isn't king. Learn why it might be worth the effort to reinvest your money through portfolio rebalancing and reentering the market gradually.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.

Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.

Spotify and the Spotify logo are registered trademarks of Spotify AB.

0419-9WFE