: Who made the bad decision?

 Does the decision maker have enough

information to make a good decision?

 

: Does the decision maker have the incentive to make a good decision?

•  Answers to these questions will suggest one

of three solutions:

 

 Let someone else make the decision,

someone with better information or

incentives.

S2: Give the d

ecision maker more

information.

 Change the decision maker’s incentives.