People persist in trying to explain their own and the actions of others in rational, logical, terms. Sometimes, they are so clearly nonsensical that we ascribe them to psychological or characterological disorders. People may have thinking which is so distorted by psychoses, neuroses, or character issues, that that are incapable of thinking and reacting logically. However, on a lesser level, most of us behave in ways which are the result of past experiences. Just as the burnt child fears the flames, so we may associate some rational act with something which turned out badly, and so we avoid performing it.
This carries over to interpersonal relations as well as business decisions. Knowing yourself objectively is the only way to avoid this.
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