Our brains are hardwired to make much of modern life difficult. This is especially true when it comes to dealing with uncertainty. On the bright side, if you know the right tricks, you can override your brain’s irrational tendencies and handle uncertainty effectively.
Our brains give us fits when facing uncertainty because they’re wired to react to it with fear. In a recent study, a Caltech neuroeconomist imaged subjects’ brains as they were forced to make increasingly uncertain bets—the same kind of bets we’re forced to make on a regular basis in business.
The less information the subjects had to go on, the more irrational and erratic their decisions became. You might think the opposite would be true—the less information we have, the more careful and rational we are in evaluating the validity of that information. Not so. As the uncertainty of the scenarios increased, the subjects’ brains shifted control over to the limbic system, the place where emotions, such as anxiety and fear, are generated.