Shortform Books

What Is Information Asymmetry?

What is information asymmetry? What are the ethical implications of asymmetries in information? Asymmetry of information is where one party involved in a transaction has more information than the other party. According to Nassim Taleb, the author of Skin in the Game, asymmetry of information is essentially the same as asymmetry of risk. When there is a hidden imbalance of information in a transaction, the party with less knowledge incurs more risk. In this article, we’ll explain how the risk created by information asymmetry contributes to unethical transactions.

Return With the Elixir—The Hero’s Homecoming

What happens in the return with the elixir stage of the hero’s journey? Is it dangerous for the hero to return to the secular world? The return with the elixir stage of the hero’s journey is the step where the hero returns to the secular world with the divine boon in hand to be shared with his people. However, a returning hero faces the danger of losing the spark of divinity due to the banalities of ordinary human existence. This is why the mythical Aztec god-king Moctezuma never set foot on the ground to avoid being sullied by the un-sacred

Creative Challenges Are a Part of the Creative Process

What are some of the most common obstacles you encounter when creating? How do you deal with these challenges? No matter what creative pursuit you take on, there will always be attending annoyances. Developing an ability to cope with irritants and unpleasantness is as much a part of your job as a creator as actually creating. In this article, we’ll discuss how to handle the inevitable creative challenges you’ll encounter on your creative journey.

Modern Education Breeds “Intellectuals, Yet Idiots”

What does Taleb mean by “Intellectual, Yet Idiot”? What are the defining traits of someone whom Taleb would consider Intellectual, Yet Idiot? “Intellectual, Yet Idiot” is a term coined by Nassim Nicholas Taleb to refer to a type of person who lacks “skin in the game”—that, who is averse to risk. Taleb argues that Intellectual, Yet Idiots create flawed systems because the concept of skin in the game is totally foreign to them. They would never think to dissect a situation in terms of risk, and as a result, they fundamentally misunderstand many aspects of life. In this article, we’ll

B. Anderson: The Origins of National Consciousness

How did nationalism develop? What was it like to live in the pre-nationalist age? Political scientist and historian Benedict Anderson says that the ideology of “nationalism” is a fairly recent social construct. Before nationalism, people would identify themselves with their occupation, or village, and political communities were ruled by dynastic sovereigns rather than governments. Keep reading to learn about the origins of national consciousness, according to Benedict Anderson.

The Instinctive Reaction Tendency—Explained

The 25 Cognitive Biases: Instinctive Reaction Tendency

What is the instinctive reaction tendency? How do you keep calm in stressful situations? The instinctive reaction tendency is the inclination to react without thinking during stressful situations leading to ill-informed decision making. You can control the tendency by keeping calm during stressful situations and recognizing that you still have some time to think methodically before making a decision. Read on to learn more about the instinctive reaction tendency.

Loss Aversion Bias: Explained With Examples

The 25 Cognitive Biases: Loss Aversion Bias

What is loss aversion bias? How do you avoid triggering the tendency? The loss aversion bias is the tendency to prefer avoiding losses to acquiring new gains. This bias is triggered by the pain of losing something valuable in the past. You can manage the tendency by calibrating all your losses in true absolute terms, rather than relative terms. Read on to learn more about the loss aversion bias.

John Kotter: Sustain Acceleration to Cement Change

What does Kotter mean by “sustain acceleration”? Why don’t changes tend to sustain themselves? Step 7 of John Kotter’s 8-step change model is to sustain acceleration. Kotter says that you must continue to build upon your changes, otherwise, employees will fall into their old ways of doing things. In his book Leading Change, Kotter provides some actionables and tips on how to do this. Continue below for an explanation of step 7 of the change model.

The Upholder, Obliger, Questioner, & Rebel: Explained

What are the four tendencies from Gretchen Ruben’s book? What are the personality traits, strengths, and weaknesses associated with each tendency? The four tendencies are the Upholder, Obliger, Questioner, and Rebel. Knowing what type of tendency you are can help you find a better job fit, discover your strengths, and understand those around you better. Here is an overview of each of the four tendencies.

Intermediate Goals: Milestones of Success

Do you set intermediate goals as benchmarks toward your major goals? What difference can they make? In Scaling Up, Verne Harnish argues that setting and reaching intermediate goals contributes to team buy-in and the ultimate achievement of your vision. They also give you a chance to learn what’s working and what isn’t. Read more to learn about intermediate goals.