The World's Best Book Summaries
What is alternative blindness? How does alternative blindness affect decision-making? Alternative blindness is a decision-making bias where you hone in on two options, neglecting alternatives. This bias can manipulate you to follow other people’s plans. It makes Option A seem like your only choice when a different option could actually suit you better. Keep reading to learn about alternative blindness bias, why it happens, and how to overcome it.
What are some of the most common logical fallacies? Why do these fallacies occur? There are two main kinds of thinking: fast and instinctive, and slow and logical. Both play important roles, but both cause logical fallacies when used in the wrong situation. Here are some of the most common logical fallacies that come from using the wrong kind of thinking.
What is survivorship bias? Why does it occur? Survivorship bias is where you anticipate a higher chance of success in a project or venture than you actually have of achieving. This happens because success is more widely publicized than failure. Let’s explore the definition of survivorship bias and how not to fall prey to it.
How would you describe your relationship with money? Why do so many people act in so many different ways when it comes to money? According to Morgan Housel in his book The Psychology of Money, every person has a different relationship with money based on a few factors: what you live through, the financial climate, unemployment rates, etc. That’s why, no matter how much financial advice is out there, people will continue to act on what feels right to them. Here’s why subjective rationality plays a huge role in your views of money.
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.
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.
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.
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.
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.
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.