Some people just don’t know when to cut their losses. OK, basically no one does. Sunk cost is not only a powerful concept, it’s a bad habit written into all our subconscious minds. I don’t think you can escape its powerful grip, but you can learn to live with it a [Keep reading]
Writing about fairness in the business section risks ridicule and derision, but only from people who read just the first few pages of their Econ 101 textbook, then nap through the rest of the class. There’s some great research into people as economic actors and how they react to unfairness. [Keep reading]
“People are wired to focus on threats, so positive information is tuned out. When fear grabs our focus, our brains can’t seem to see anything else. That leads to a picture of the world that’s all gray clouds, no silver linings. There’s a link between attentional bias, depression and anxiety.” [Keep reading]
Our minds often play tricks on us. It’s human nature. Believe it or not, people are Predictably Irrational (thanks, Dan Ariely). Marketers and salespeople use these tricks to their advantage; corporations have spent billions in research learning how to exploit consumers using these tricks. Everyone should know about them. I’ve [Keep reading]
I recently published a story about scarcity, and its powerful impact as a marketing tool. Order today! Only 3 remaining! Today’s I’m sharing a piece I wrote for PeopleScience.com that describes the underlying principle/mental shortcut that empowers scarcity — loss aversion. Losses loom larger than gains. The pain of losing [Keep reading]
It’s foundational to almost every scam you’ve ever read about. Act fast! Last chance! It’s also the force behind much unsavory human behavior. Fighting over distribution of scarce resources brings out the worst in us. It’s part of what makes racism so powerful (“They’re taking YOUR jobs!”). That’s why it’s [Keep reading]
If you read my recent entry on the Dunning-Kruger Effect, you’ve probably figured out that I enjoy a story that takes (some) people down a peg or two. Maybe it was all those years covering tech companies in Silicon Valley and Seattle, where fortunes are made on vaporware, owing [Keep reading]
Emotional attachment can be costly. In fact, social scientists have actually measured how costly! People become too attached to stocks, to real estate, to automobiles, and of course, to ideas. We endow things we have with added value because of these attachments, and that makes us poor players in a [Keep reading]
“Hyperbolic discounting” is one of those terms that sounds more impressive than it is. People make weird – but oddly predictable – decisions when balancing today’s desires against tomorrow’s needs. As a concept, however, it’s quite powerful. There’s a pattern to your bad choices. Understand that pattern and you can [Keep reading]
Ever thought something was a bad idea — like walking down a dark street, or adding a feature to a product you thought no one would want — but did it anyway because everyone else around you seemed to think it was ok? Group process can be a wonderful thing. [Keep reading]
Bob Sullivan