Just noticed this very attractive title by the Brafman brothers- The book, Sway — the irresistable pull of irrational behavior, “will challenge your every thought”, according to a NY Times review. And it gets similarly good reviews from other prominent people, like Michael Shermer, the author of the recent book The mind of the market, which I blogged about recently.
I found a couple of good videos on this book that’s good to share:
A longer version with more nuances can be seen here:
So after this, you get the idea: unconscious, automatic thought patterns act out and cause irrational behaviours, sometimes at the worst possible time and place.The questions raised are, of course, interesting and important. Why do we sometimes make horrific decisions, despite having all the information available to make better ones? Why do prominent people, like George W. Bush, suffer from loss aversion, leading to billions of dollars spent and thousands of lives lost? Because it’s “too late” to pull out? Because the pain of acknowledging defeat, error or insufficiency is bigger than the benefit of sparing yet more money and lives?
Other examples can be found at the Wall Street, military, aircraft captains, and even yourself. Maybe even on a daily basis. Taken together, the examples presented in these videos and the book demonstrate that we are all susceptible to make these kinds of errors. The next and better step is, of course, to identify these errors in ourselves (and others) and act upon them in time. Coaching, anyone?
I guess I should read the book, if the publishers will send me the book 8)