Assessing Managerial Decisions Using the Dual Systems Theory of Reasoning: Future Challenges for Management Researchers‪.‬

INTRODUCTION Decisions of major consequence occur in response to real life situations. Often these situations are very complex and require decision-making that occurs over lengthy periods of time. The theoretic framework based on two systems of reasoning draw a distinction between the reasoning processes employed in making these decisions (e.g. Sloman, 1996). One system is purposeful and rational, the other automatic and affective (Hamilton, Sherman & Maddox, 1999). These systems can coexist and influence decision-making behavior in everyday life (Epstein & Pacini, 1999). Although the terminology used to describe these two systems varies, the characteristics of the two systems are described in a similar manner. Epstein (1994) described the two systems as experiential and rational; Sloman (2002) characterized them as associative and rule-based, Stanovich and West (2000) and Kahneman (2003) have labeled them as System 1 and System 2. The System 1 or the experiential system describes a fast, effortless, intuitive reasoning process that is subject to emotional influences and which is often utilized to make many decisions in a near simultaneous manner. The System 2 or the rational system describes a slow, effortful, logic-based process that results in decisions that are made sequentially rather that simultaneously. The underlying assumptions regarding the use of the two systems are that System 2 reasoning requires a greater use of appropriate information and analysis (Kahneman 2003) and that a greater use of System 2 or logic-based reasoning by the decision maker will result in better solutions to more complex problems than a greater use of intuitive reasoning (Stanovich and West 2002).