Shortform Books

Nassim Taleb: The Psychology of Loss Aversion

What is loss aversion? Do you think it’s rational to be loss-averse? In psychology, loss aversion is a cognitive bias whereby individuals would rather avoid losses than acquire gains. Most psychologists describe humans’ sense of loss aversion as irrational. They justify this with math—studies show that people are willing to overpay to insure against financial loss. However, according to Nassim Taleb, loss aversion is an adaptive phenomenon because it helps us survive. In this article, we’ll explore Taleb’s take on loss aversion.

John Kotter’s Step 5: Remove Obstacles to Change

What are the most common obstacles to change in an organization? How can you overcome those obstacles? Whenever you try to make big changes, especially in an organization, roadblocks are inevitable. The biggest roadblock is usually the resistance to change among the junior and middle managers. Learn how to overcome these obstacles below.

Connecting With Your Kids: 3 Strategies for Bonding

Why is connecting with your kids a part of the No-Drama Discipline process? What three strategies can you use to make a connection? In their book No-Drama Discipline, Siegel and Bryson explain that the second step in their No-Drama Discipline method is to make a connection with your child. You can do that through touch (such as hugging), affirming their emotions, and listening while your child talks. Continue below to learn why making a connection with your child is important to the discipline process.

How Negative Thought Patterns Hurt Your Mental Health

Do you often find yourself slipping into negative thought patterns, ruminating about the past, or imagining the worst-case scenarios in the future? Can negative thinking attract negative experiences? According to Joseph Murphy, the author of The Power of Your Subconscious Mind, if you’re not entirely happy with your life experiences, it’s because you’re thinking “false” negative thoughts that contradict the positive force of Universal Consciousness. These negative thought patterns leave an imprint on your subconscious mind which can further perpetuate the cycle of negativity. In this article, you’ll learn how your negative thoughts inhibit the positive flow of Universal Consciousness,

Rescue From Without: The Hero’s Journey Is Aided

What happens during the rescue from without the stage of the hero’s journey? Why does the hero require external help? The rescue from without stage of the hero’s journey is the step where the hero requires aid from a powerful external benefactor to escape the realm of the supernatural and return home. A hero will be in this situation when he has won the ultimate boon through trickery and is been chased by gods seeking to recover what was stolen. Read on to discover more about the rescue from without stage of the hero’s journey.

Trading Freedom for Security Is Fair Game

How much does your job limit your freedom? Apart from freedom, what other sacrifices do you have to make for the security your job provides? In his book Skin in the Game, Nassim Taleb argues that employment is a mutually beneficial agreement in which employees are trading freedom for security to a company that, in exchange, bears some of their personal risks. In Taleb’s words, employees put their skin in the company’s game. In this article, we’ll discuss the risk-freedom trade-off made by employees, detailing the benefits employees receive from employers and the ways in which their freedom is limited.

Elizabeth Gilbert: Perfectionism Kills Creativity

Is your tendency towards perfectionism getting in the way of your ability to be creative? How does perfectionism hinder creativity? One of the greatest mental obstacles to creativity is perfectionism. No matter how hard you try, you will never be able to attain perfection in the creative realm—there will always be a way someone can find your work lacking. It’s therefore pointless to strive for perfection and better just to create something imperfect and put it into the world. In this article, we’ll look at how perfectionism kills creativity and how not to let it get in the way of

The Fine Line Between Nationalism and Racism

What is the difference between nationalism and racism? In what ways are the two concepts linked? In his book Imagined Communities, Benedict Anderson claims that nationalism and racism are two completely different concepts, although they are often discussed together. However, since the book was written, some critics claim that nationalism and racism are inherently connected. Keep reading to learn more about the relationship between nationalism and racism.

The 3.5% Rule: The Passionate Few Change the World

What is the 3.5% rule? Does it really take only 3.5% of the population to challenge the status quo? According to Nassim Taleb, the author of Skin in the Game, the state of the world is largely the result of small groups passionately fighting for what they want rather than a majority’s consensus. Indeed, history shows us that in order for your passionate few to succeed, you only need 3.5% of the population on your side. In this article, we’ll explore how the concept applies to politics, religion, language, and morality. We’ll conclude by explaining how you yourself can be

The Contrast Bias: Why We Misjudge Value

The 25 Cognitive Biases: The Contrast Bias

What is the contrast bias? How can you avoid the contrast effect when making comparisons? The contrast bias is the tendency to compare things to one another using relative factors instead of judging each object on its own merit. This is why an object will be viewed as worse than it usually would be when compared to something much better. You can manage this bias by judging each object on its own merit rather than in relative terms. Read on to learn more about the contrast bias.