Intuitive expertise is genuine in high-validity environments (stable patterns, rapid feedback) but illusory in low-validity environments (unstable, delayed feedback).
A chess grandmaster's intuition about the best move is highly reliable because chess has stable rules and immediate feedback. A CEO's intuition about which acquisition will succeed is unreliable because business environments are unstable and feedback is delayed.
All expert intuition is equally reliable—intuition is only trustworthy in high-validity environments with stable patterns and rapid feedback.
Thinking, Fast and Slow
Daniel Kahneman
Fast, automatic, unconscious cognitive processing that operates through pattern recognition and associative memory without deliberate effort.
Systematic tendency to overestimate the accuracy of our beliefs and predictions, especially in low-validity environments.
High confidence in predictions based on coherent stories, even when predictive validity is low or zero.
High confidence in predictions based on coherent stories, even when predictive validity is low or zero.
What distinguishes high-validity environments where expert intuition is reliable from low-validity environments where it's illusory?
You're hiring for two roles: an emergency room nurse and a venture capital investor. For which role should you trust the candidate's intuition more, and why?