On the recommendation of a Twitter friend I recently read (or, rather, listened to the audio editions of) three excellent books about how people make decisions:
The Art of Choosing by Sheena Iyengar
Predictably Irrational by Dan Ariely
How We Decide by Jonah Lehrer
All three contain countless nuggets of recent scientific insight into behavioral economics, or why people and markets behave as we do, as explained by three very cogent thinkers. All three focused on defining the abilities, strengths and weaknesses of different brain areas; how human impulses mesh and are sorted and acted on; predictable biases of both “rational” and “emotional” sorts; and, what we can do to avoid—and manipulate—biases and errors. Interestingly, all three authors acknowledged the increasing difficulty academics are having in drawing sharp lines between “rational” and “emotional” behavior when confronted with contemporary knowledge about brain function, but all three attempted to draw distinctions between “rational” and “emotional” decisions nonetheless—with varying degrees of success.
The book I enjoyed the most was Jonah Lehrer’s, which I could oversimplify by describing as “neuroscience discovers B.F. Skinner” because of his focus on learned behavior. But perhaps that’s because Lehrer’s approach best fit my personal preconceptions about behavior—and the fact that B.F. Skinner was still working at the psych department where I received my undergraduate degree in psychology way back when I was in school.
Ariely’s book is premised on the idea that traditional economic theory is Continue reading “3 excellent books about how people make decisions”