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Ten Must Have Books Part 1

Dmitry Davydov, at Unusual Business Ideas that Work, has an neat list of 10 books describing how we actually make decisions and how businesses profit from our irrationality.

Here are the bottom 5 from his Top 10 list, and my own observations. (Tomorrow, I will comment on his top 5)

"Cialdini believes that influence is a science. This idea attracted me. As a rhetorician, I have always thought of persuasion as more of an art. Cialdini, however, makes a first-rate case for the science point of view. But maybe most importantly, he makes his case in a well-written, intelligent, and entertaining manner. Not only is this an important book to read, it is a fun book to read too." I would add that the examples are compelling and you will re-read this book with delight.

This looks to be an interesting book, but I haven't read it. "The book lays out some general principles but its great strength lies in the interesting problems, a series of hints to help you solve each problem, and an interesting discussion of the pitfalls and triumphs involved."

"The author writes to the layman, making the language of statistics, probability, randomness a fascinating read. It's clear that he's well aware of the fallacies and delusions (and consequent harm) to which most of us are easy prey. But he leaves it to the reader to draw any philosophical-theological inferences about the need for greater humility." Hmm, not sure that this will replace my Talib collection of essays - but you never know.

"Gary Marcus looks to the many and varied foibles, inconsistencies, and inaccuracies of the human mind and concludes that our brains are not, in fact, models of brilliance and efficiency, but are rather cobbled-together systems, designed for one purpose and pressed into action for another - the classic definition of a kluge." This is a great idea, and counter-evolutionary in its possible scope. Instead of selfish all knowing genes directing our behaviour, we have roughed up systems designed to solve a particular problem with what means are at our disposal.

"Clinical psychologist Van Hecke has compiled a list of 10 mental glitches that have infiltrated contemporary society, afflicting even the smartest among us, limiting thought, success and relationships. Van Hecke devotes a chapter to each blind spot, including "Not stopping to think," "Not noticing," "Jumping to conclusions" and "Missing the big picture." This book, I wasn't wild about. Maybe I am just missing something, perhaps the big picture?

"Topics include studies of personal ads and pickup lines, determining which are most effective, how to detect liars, manifestations of prejudice and hypocrisy (are religious people or priests more honest or generous than others? it has been tested)." This isn't bad, but I thought some examples were better than others. Basically, the book looks at ways we as humans get a lot of information from a relatively small sample.

I have serious doubts about the efficacy of disclosure laws so I was very unhappy to find out that Thaler and Sunstein have adopted the disclosure is best tradition,

"Elsewhere, Thaler and Sunstein endorse Justice Louis Brandeis's injunction that "sunlight is...the best of disinfectants."

In financial markets, especially, prices are often opaque, which gives unscrupulous businesses ample scope for ripping off customers by imposing on them hefty hidden charges, late fees, and the like. Thaler and Sunstein propose that credit card companies, mortgage issuers, and other financial services firms should be forced to disclose all of their charges clearly, in plain language, so that potential customers can comparison shop.

Applying the same argument to cell phone plans, the authors write: "The government would not regulate how much issuers charge for services, but it would regulate their disclosure practices."

Adopting similar language, Obama has proposed a Credit Card Bill of Rights, which would require issuers to provide lenders with full and clear information about the terms of their loans, including all charges."

Oh, goodie more disclosure laws which will allow the market to tell you exactly how they are screwing with you, if you could only read and understand the "disclosure".

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Full post as published by Misleading Advertising Law on June 10, 2008 (boomark / email).