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Navigating Complex Decisions: An Introduction to the HUMI Model for Professionals

Updated: Jan 21

Title: Navigating Complex Decisions: An Introduction to the HUMI Model for Professionals


Abstract:


The Human Universal Model of Interaction (HUMI) Model v3.0 is an innovative framework designed to guide professionals through the intricate web of decision-making processes. By integrating cognitive psychology with economic and sociological principles, the HUMI Model provides a structured approach to understanding and predicting outcomes in various interaction scenarios. This article introduces the HUMI Model to professionals, exploring its components with examples from both a prehistoric hunter scenario and a contemporary oil trader story.


Introduction:


In the realms of business, economics, and social interactions, professionals often face decisions fraught with uncertainty. The HUMI Model v3.0 emerges as a versatile tool that dissects these complexities, offering insights into how different factors—ranging from cognitive biases to value assessment—interplay to shape decision-making outcomes.


The HUMI Model v3.0 Explained:


The HUMI Model v3.0 visualizes the interaction space between two parties as a central box where decisions are contemplated. Within this space, the model captures the dynamic shifts between intuitive System 1 and analytical System 2 thinking, marked by "1/2" and "2/1" ratios, indicating the dominance of one system over the other.

State transitions, depicted by large arrows with "‡" symbols, are triggered by changes in perceived probabilities, highlighting the influence of the Probability Effect (PE) and the Certainty Effect (CE). These transitions reflect the fluidity of cognitive dominance during decision-making.


The "⇌" symbol stands for each party's perspective on the current state and value of equilibrium, while the larger "+" and "−" signs represent the range of values for items at stake. Inventory and risk labels provide a quantitative element, measuring available resources for use and trade and the willingness to engage in risky exchanges.


Example 1: The Hunter Story


In a prehistoric context, Jorah faces a decision to trade with Elara. The HUMI Model v3.0 helps Jorah assess the value of his items and the risk of disrupting the current equilibrium. He must navigate the potential shifts in cognitive processing as the interaction unfolds, considering both his immediate needs and long-term strategies. The model guides Jorah through the probabilities of success and helps him weigh the costs and benefits of altering the equilibrium through trade.


Example 2: The Oil Trader Story


Alex and Jamie, two oil traders in a volatile market, contemplate a partnership. The HUMI Model v3.0 aids in evaluating their trading strategies amid market uncertainties. As they consider their resources and the likelihood of a successful collaboration, the model underscores the possible cognitive shifts and the importance of maintaining a valuable equilibrium. It provides a structured approach for the traders to analyze the potential outcomes of their partnership, balancing the probability of success against the risk of disrupting their current market positions.


Conclusion:


The HUMI Model v3.0 is a sophisticated framework that enhances the decision-making toolkit of professionals across various fields. By factoring in the complexities of human cognition and strategic equilibrium management, the model offers a comprehensive approach to navigating decisions in uncertain environments. Whether dealing with ancient trade negotiations or modern financial markets, the HUMI Model v3.0 stands as a testament to the intricate nature of human interactions and the value of a systematic approach to understanding them.


Read: HUMI Model conventions, for more details.




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