Theory or Intuition: what makes a good decision? by HEC Prof. Itzhak Gilboa

In this video, HEC Professor Itzhak Gilboa, holder of the AXA Chair For Decision Sciences, explains how theory can be used in decision making, but why it was unable to predict the financial crisis of 2008. Ideally, theory would predict everything numerically and accurately yet the complexity of our world renders this impossible. Despite this, he stresses that it would be a serious mistake to assume that the mathematically based theory of decision-making has nothing to teach us; intuition has its own merits, but we cannot rely on this alone.