Before doing things, we love to have reasons. Therefore, when delegating things to other people, be sure to share the reasons why the task is important. In a famous study by researcher, Ellen Langer, she showed that when asking for a favor
Some stress helps us focus, but too much destroys our decision making capabilities. Therefore, we must learn how to manage stress in situations, so that we make the best decisions possible. In ethically questionable experiments performed by Nobel Laureate, Ivan Pavlov, where
We tend to overemphasize information that is the most available and vivid from our surroundings and our mind. In the academic world, this is known as the Availability Bias. Unfortunately, The easiness doesn’t mean that the information is the most useful one.
People tend to talk a lot about things they’re not an expert in. Be very careful of these people. Instead, try to surround yourself with people who show restraint in sharing their opinions until they’re more proven or thought through. Source: Michael
We trust and respect leaders too much, even when they make mistakes. We also trust leaders in areas where they are not experts. This is known as the Halo Effect. Source: Michael Simmons & Ian Chew
Lollapalooza Tendency is the tendency to get extreme consequences from confluences of psychological tendencies acting in favor of a particular outcome. Although it is lasted last here, Munger counts it as one of the most important. This tendency works in one of
We tend to be foolishly optimistic without calculating the risks. In anticipation of good future outcomes - and how much control we have over them - we overestimate how much control we have over them. Neuroscientist Tali Sharot’s research suggests that the
Our conscious mind is limited. Therefore, we can’t register every detail that we see, hear, feel, taste, and smell in every moment. Our brain unconsciously makes choices about where our attention flows. One of the ways that it makes this decision is
We are wired to make a huge number of decisions in our life based purely on other people’s actions. The effect is so strong that even if we are surrounded by a small group of people who insist that blue is green,
We tend to intensely react to any real loss or potential loss irrationally. This explains in-fighting that occurs within bureaucracies. Source: Michael Simmons & Ian Chew