Acting in the public interest – a framework for analysis - ICAEW

8.1.2 Decision by intuitionMaking decisions by what seems to us as intuition, has also been called ‘fast thinking’. 175 What isactually happening is that an automatic sub-conscious mental process has been invoked whichrecognises patterns, draws on past experiences and which balances various actions and goals(and prejudices) against each other. Thus many of the processes considered in the Bazermanapproach noted above are being undertaken, but in a less structured and objective manner.Decision making by intuition can have some advantages: speed; intrinsically taking into accountwhat we really care about; and a greater incentive to implementation. 176 It is also a useful shortcut when common sense can be applied and the proposed outcome is not going to be disputed.There is some empirical evidence suggesting that calculation may sometimes be inferior tointuition in making good judgements. 177 How often do we do an objective assessment, comeup with a ‘best’ answer and then decide that it is not what we really want to do? This maybe because our objective assessment has caused us to focus too much attention on relativelyunimportant criteria, or because we have subconscious learning processes that can beinterfered with by attempts at explicit learning.However, decision-making by intuition also has drawbacks. It is difficult to switch off and thepast experiences we are drawing on may not actually match the current circumstances. 178Other traits of human nature that lead to illogical decisions are considered later. In particularthese include an over-reliance on emotion (or even craving) and a lesser likelihood of realisingthat information or alternatives are inaccurate, irrelevant or missing. In addition, of particularrelevance to this study, it is difficult to demonstrate how the process has been applied and isdifficult to apply in group situations, where different members of the group arrive at differentintuitive outcomes.A combination of bases – informed intuition – is considered below.8.2 Bases of overcoming measurement problems8.2.1 MeasurementThe fundamental principle of measuring utility is that that utility is the sum of individualinterests. Therefore one could set out formulae to calculate utility.Panel 8.1: Utility calculation example(a) for an individualr = a1x1 + a2x2 + a3x3 + ……. +/- anx1x2x3….., where• r is the overall measure being maximised (for example wellbeing or happiness);• x1, x2 etc are the satisfactions gained from the different factors that contribute to theoverall measure (examples being economic well-being, health, or safety);• a1, a2 etc are weighting factors applied to each of the satisfactions; and• anx1x2x3 is an interactive factor that allows for the fact that some combinations offactors may change overall satisfaction in a way that is not just the sum of the parts.(b) for the public interestR = ∑ Yi/Y ri, where• ri is the individual interest for each person being considered; and• Yi/Y is a weighting factor being allocated to each of those individuals. 179Like impact analysis, the theory behind measurement in this manner is relatively easily set outbut the underlying concepts are often difficult to quantify.8.2.2 Ends and meansOn the face of it utilitarianism is concerned with the outcome, so intent is irrelevant. However,in terms of decision making, utility will often need to be based on expected outcome, inwhich intent may be relevant. 180175Kahneman, Thinking, Fast and Slow.176Thagard, How to Make Decisions: Coherence, Emotion and Practical Inference.177Quoted in Thagard, ibid.178Kahneman, Thinking, Fast and Slow.179Deskins, ‘On the Nature of the Public Interest’.180Schultz, ‘Henry Sidgwick’.Aggregation and decision55