{"id":24383,"date":"2021-01-17T22:50:00","date_gmt":"2021-01-18T02:50:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=24383"},"modified":"2021-01-29T16:30:06","modified_gmt":"2021-01-29T20:30:06","slug":"how-extroverts-think","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-extroverts-think\/","title":{"rendered":"How Extroverts Think About Risky Behaviors"},"content":{"rendered":"\n<p>Do we know how extroverts think? How does it differ from the way introverts think and what does this mean for management?<\/p>\n\n\n\n<p>How extroverts think depends on the specific situation. One area of clear difference between introverts and extroverts is the thought process on risks. Extroverts are significantly more likely to engage in risky behavior, indicating that how extroverts think about risk and calculating risk is different from their introverted counterparts.<\/p>\n\n\n\n<p>Keep reading for more about how extroverts think.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">How Extroverts Think Versus How Introverts Think<\/h2>\n\n\n\n<p><strong>There are personality differences in making decisions, taking chances, recognizing and heeding warning signs, and solving <a href=\"https:\/\/www.shortform.com\/blog\/complex-problem\/\">complex problems<\/a>.<\/strong> Both have strengths that they can leverage to their benefit when they also mitigate the downsides of their way of thinking. Companies can benefit by making sure both kinds of thinkers are involved in key decisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Risk-Taking<\/strong><\/h3>\n\n\n\n<p>Along with making risky investment decisions, extroverts are prone to downplay or ignore danger in other areas. For instance, extroverted people are more likely than introverts to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Be killed while driving<\/li><li>Be hospitalized due to injury<\/li><li>Smoke<\/li><li>Have risky sex&nbsp;<\/li><li>Be unfaithful<\/li><li>Participate in high-risk sports<\/li><li>Be overconfident<\/li><\/ul>\n\n\n\n<p>All this suggests that <strong>when it comes to making group decisions, extroverted people would do well to listen to introverted ones, especially when introverts see problems ahead.<\/strong><\/p>\n\n\n\n<p>Genetics may be a factor in risk-taking. One researcher found that extremely reward-sensitive extroverts who have one variant of a dopamine-regulating gene are more likely to take financial risks. However, introverts who have another gene variant\u2014of a serotonin-regulating gene\u2014take 28% less financial risk. These introverts outperformed others at complicated gambling games. In another study, of traders at a large investment bank, the best performers were even-keeled introverts.<\/p>\n\n\n\n<p><strong>Introverts also may be better at delaying gratification<\/strong>\u2014in studies where participants had a choice of an immediate reward or a larger one later, extroverts tended to go for the immediate reward, while introverts waited for the larger one.<\/p>\n\n\n\n<p>Looking back at the 2008 financial crisis where financial institutions made risky loans, some analysts contended a major cause was that aggressive risk-takers dominated the <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a> process and pushed more cautious people aside.<\/p>\n\n\n\n<p>A similar thing happened at Enron in 2001. The energy company\u2019s business culture favored risk-taking extroverts, who ostracized introverts and pushed for reckless business deals that ultimately led to bankruptcy. (Shortform: <a href=\"https:\/\/www.shortform.com\/app\/book\/the-smartest-guys-in-the-room\">Read our summary of The Smartest Guys in the Room here<\/a>.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do we know how extroverts think? How does it differ from the way introverts think and what does this mean for management? How extroverts think depends on the specific situation. One area of clear difference between introverts and extroverts is the thought process on risks. Extroverts are significantly more likely to engage in risky behavior, indicating that how extroverts think about risk and calculating risk is different from their introverted counterparts. Keep reading for more about how extroverts think.<\/p>\n","protected":false},"author":6,"featured_media":18220,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,9],"tags":[192],"class_list":["post-24383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management","category-psychology","tag-quiet-the-power-of-introverts","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Extroverts Think About Risky Behaviors - Shortform Books<\/title>\n<meta name=\"description\" content=\"If a group is discussing something, make sure you listen to caution from the introverts. How extroverts think is often more open to risk.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/how-extroverts-think\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Extroverts Think About Risky Behaviors\" \/>\n<meta property=\"og:description\" content=\"If a group is discussing something, make sure you listen to caution from the introverts. 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