Psychology Archives

The Art of Thinking Clearly: Quotes by Rolf Dobelli

Are you looking for The Art of Thinking Clearly quotes by Rolf Dobelli? What are some of the most noteworthy passages worth revisiting? In The Art of Thinking Clearly, Rolf Dobelli breaks down the most common logical fallacies that inhibit decision-making, including confirmation bias, social proof, and hindsight bias. Dobelli aims to help people recognize and overcome these fallacies so they can make better decisions. Below is a selection of passages with explanations.

Financial Optimism: The Key to Investing Success

Are you an optimist or a pessimist when it comes to money? Why does financial optimism work better than financial pessimism? In his book The Psychology of Money, Morgan Housel says that you should remain optimistic when it comes to finances and investing, no matter what others say. He outlines three reasons why financial pessimism often seems like the smartest route but isn’t. Keep reading to learn why an optimistic view on finances and investments is beneficial.

The Planning Fallacy: Why Your Plans Fail

What is the planning fallacy? Why do we tend to exaggerate our capabilities when making plans for the future? The planning fallacy is where you underestimate how much time a future task or project will take to complete. According to Rolf Dobelli, the author of The Art of Thinking Clearly, there are two reasons it occurs: self-esteem and life’s unpredictability, Keep reading to learn about the planning fallacy, why it happens, and how to mitigate it.

The Conjunction Fallacy: Plausibility Over Probability

What is the conjunction fallacy? Why do we tend to discount probability when choosing whether to believe something or not? The conjunction fallacy is the human tendency to prefer a plausible story to a probable one. In other words, when a story makes sense to you, you’re likely to believe it even if the true probability of it occurring is low. Keep reading to learn about the conjunction fallacy.

Eric Berne: What Are the “Games” People Play?

What is Eric Berne’s Games People Play about? How can you tell someone is playing a game on you? Games People Play is Berne’s 1964 classic about the many ways that we habitually relate to one another through “games.” These aren’t fun, harmless social games, though—they’re subtle, largely unconscious patterns that harm us and our relationships. Berne explains how most of us don’t even notice our games, and how we’re missing out on the fulfillment of game-free living. Keep reading to learn about Berne’s concept of “games” and why we play them.

Story Bias: Why the Brain Favors Stories Over Facts

What is story bias? Why do people remember stories better than facts? Story bias is the tendency to interpret information as part of a story even though the facts don’t actually support the narrative. Stories are easier to remember than other types of information, which is why we rely on them instead of facts. Keep reading to learn about story bias, why it happens, and how to overcome it.

The Psychology Behind Cognitive Dissonance

What is cognitive dissonance? How do people resolve the uncomfortable feeling that arises as a result of dissonance between cognitions and actions? In psychology, cognitive dissonance is the mental discomfort that occurs as a result of holding two conflicting cognitions (e.g. beliefs, values, or attitudes) or acting in ways that contradict those cognitions. To ease this discomfort, people tend to deny the facts or rationalize their thinking to restore cognitive consonance. Keep reading to learn about the psychology of cognitive dissonance.

How Personal Finance Stories May Be Influencing You

Do you allow personal finance stories to change how you use your money? Do finance stories scare you away from making certain decisions or inspire you to invest in certain things? According to Morgan Housel, the author of The Psychology of Money, falling for financial success stories can cause you to make poor financial decisions. Listening to the personal finance stories of others can influence you to risk your financial health based on hope, or even make you think that you have more control than you actually do. Here’s why you should be careful what stories you believe about money.

The Neglect of Probability Bias in Decision-Making

What is the neglect of probability bias? Do you consider the probabilities of possible outcomes when making decisions? Neglect of probability bias is the tendency to disregard probability or risk when making decisions in the face of uncertainty. The most optimal choice is the one that has the highest probability of turning out well, but people tend to opt for the option that will have the biggest positive impact if it occurs, regardless of how likely it is. Here’s why we tend to neglect probability when making decisions.

Hyperbolic Discounting Bias: What It Is & How to Avoid It

What is hyperbolic discounting bias? Why is the brain so prone to seeking immediate gratification? Hyperbolic discounting bias is the tendency to crave immediate gratification and the willingness to sacrifice an unreasonable amount of money, time, or effort for that immediacy. According to Rolf Dobelli, the author of The Art of Thinking Clearly, humans are hardwired to opt for immediate reward (in the past, it helped us survive), but more often than not, it inspires bad decisions, like paying a high amount to get something quicker. Keep reading to learn about hyperbolic discounting bias, why it happens, and how to