Narrative Economics: How Stories Go Viral and Drive Major Economic Events


Robert J. Shiller - 2019
    Using a rich array of historical examples and data, Shiller argues that studying popular stories that affect individual and collective economic behavior--what he calls narrative economics--has the potential to vastly improve our ability to predict, prepare for, and lessen the damage of financial crises, recessions, depressions, and other major economic events.Spread through the public in the form of popular stories, ideas can go viral and move markets--whether it's the belief that tech stocks can only go up, that housing prices never fall, or that some firms are too big to fail. Whether true or false, stories like these--transmitted by word of mouth, by the news media, and increasingly by social media--drive the economy by driving our decisions about how and where to invest, how much to spend and save, and more. But despite the obvious importance of such stories, most economists have paid little attention to them. Narrative Economics sets out to change that by laying the foundation for a way of understanding how stories help propel economic events that have had led to war, mass unemployment, and increased inequality.The stories people tell--about economic confidence or panic, housing booms, the American dream, or Bitcoin--affect economic outcomes. Narrative Economics explains how we can begin to take these stories seriously. It may be Robert Shiller's most important book to date.

When: The Scientific Secrets of Perfect Timing


Daniel H. Pink - 2018
    But we don't know much about timing itself. Our lives are a never-ending stream of "when" decisions: when to start a business, schedule a class, get serious about a person. Yet we make those decisions based on intuition and guesswork.Timing, it's often assumed, is an art. In When: The Scientific Secrets of Perfect Timing, Pink shows that timing is really a science.Drawing on a rich trove of research from psychology, biology, and economics, Pink reveals how best to live, work, and succeed. How can we use the hidden patterns of the day to build the ideal schedule? Why do certain breaks dramatically improve student test scores? How can we turn a stumbling beginning into a fresh start? Why should we avoid going to the hospital in the afternoon? Why is singing in time with other people as good for you as exercise? And what is the ideal time to quit a job, switch careers, or get married?

The Culture of Narcissism: American Life in An Age of Diminishing Expectations


Christopher Lasch - 1978
    Lasch’s identification of narcissism as not only an individual ailment but also a burgeoning social epidemic was groundbreaking. His diagnosis of American culture is even more relevant today, predicting the limitless expansion of the anxious and grasping narcissistic self into every part of American life.The Culture of Narcissism offers an astute and urgent analysis of what we need to know in these troubled times.

Spent: Sex, Evolution, and Consumer Behavior


Geoffrey Miller - 2009
    In "Spent" Geoffrey Miller applies this revolutionary science's principles to a new domain: the sensual wonderland of marketing and status seeking that we call American consumer culture. Starting with the basic notion that the goods and services we buy unconsciously advertise our biological potential as mates and friends, Miller examines the hidden factors that dictate our choices in everything from lipstick to cars, from the magazines we read to the music we listen to. With humor and insight, Miller analyzes an array of product choices and deciphers what our decisions say about ourselves, giving us access to a new way of understanding-and improving-our behaviors. Like "Freakonomics" or "The Tipping Point, Spent" is a bold and revelatory book that illuminates the unseen logic behind the chaos of consumerism and suggests new ways we can become happier consumers and more responsible citizens.

Drunk Tank Pink: And Other Unexpected Forces that Shape How We Think, Feel, and Behave


Adam Alter - 2013
    Armed with surprising data and endlessly fascinating examples, Adam Alter addresses the subtle but substantial ways in which outside forces influence us--such as color’s influence on mood, our bias in favor of names with which we identify, and how sunny days can induce optimism as well as aggression. Drunk Tank Pink proves that the truth behind our feelings and actions goes much deeper than the choices we take for granted every day.

The High Price of Materialism


Tim Kasser - 2002
    Other writers have shown that once we have sufficient food, shelter, and clothing, further material gains do little to improve our well-being. Kasser goes beyond these findings to investigate how people's materialistic desires relate to their well-being. He shows that people whose values center on the accumulation of wealth or material possessions face a greater risk of unhappiness, including anxiety, depression, low self-esteem, and problems with intimacy--regardless of age, income, or culture.Drawing on a decade's worth of empirical data, Kasser examines what happens when we organize our lives around materialistic pursuits. He looks at the effects on our internal experience and interpersonal relationships, as well as on our communities and the world at large. He shows that materialistic values actually undermine our well-being, as they perpetuate feelings of insecurity, weaken the ties that bind us, and make us feel less free. Kasser not only defines the problem but proposes ways we can change ourselves, our families, and society to become less materialistic.

The Better Angels of Our Nature: Why Violence Has Declined


Steven Pinker - 2010
    In his gripping and controversial new work, New York Times bestselling author Steven Pinker shows that despite the ceaseless news about war, crime, and terrorism, violence has actually been in decline over long stretches of history. Exploding myths about humankind's inherent violence and the curse of modernity, this ambitious book continues Pinker's exploration of the essence of human nature, mixing psychology and history to provide a remarkable picture of an increasingly enlightened world.

The Organized Mind: Thinking Straight in the Age of Information Overload


Daniel J. Levitin - 2014
    Levitin shifts his keen insights from your brain on music to your brain in a sea of details.The information age is drowning us with an unprecedented deluge of data. At the same time, we’re expected to make more—and faster—decisions about our lives than ever before. No wonder, then, that the average American reports frequently losing car keys or reading glasses, missing appointments, and feeling worn out by the effort required just to keep up.But somehow some people become quite accomplished at managing information flow. In The Organized Mind, Daniel J. Levitin, PhD, uses the latest brain science to demonstrate how those people excel—and how readers can use their methods to regain a sense of mastery over the way they organize their homes, workplaces, and time.With lively, entertaining chapters on everything from the kitchen junk drawer to health care to executive office workflow, Levitin reveals how new research into the cognitive neuroscience of attention and memory can be applied to the challenges of our daily lives. This Is Your Brain on Music showed how to better play and appreciate music through an understanding of how the brain works. The Organized Mind shows how to navigate the churning flood of information in the twenty-first century with the same neuroscientific perspective.

Willpower: Rediscovering the Greatest Human Strength


Roy F. Baumeister - 2011
    Baumeister, teams with New York Times science writer John Tierney to reveal the secrets of self-control and how to master it. In Willpower, the pioneering researcher Roy F. Baumeister collaborates with renowned New York Times science writer John Tierney to revolutionize our understanding of the most coveted human virtue: self-control.In what became one of the most cited papers in social science literature, Baumeister discovered that willpower actually operates like a muscle: it can be strengthened with practice and fatigued by overuse. Willpower is fueled by glucose, and it can be bolstered simply by replenishing the brain's store of fuel. That's why eating and sleeping- and especially failing to do either of those-have such dramatic effects on self-control (and why dieters have such a hard time resisting temptation).Baumeister's latest research shows that we typically spend four hours every day resisting temptation. No wonder people around the world rank a lack of self-control as their biggest weakness. Willpower looks to the lives of entrepreneurs, parents, entertainers, and artists-including David Blaine, Eric Clapton, and others-who have flourished by improving their self-control.The lessons from their stories and psychologists' experiments can help anyone. You learn not only how to build willpower but also how to conserve it for crucial moments by setting the right goals and using the best new techniques for monitoring your progress. Once you master these techniques and establish the right habits, willpower gets easier: you'll need less conscious mental energy to avoid temptation. That's neither magic nor empty self-help sloganeering, but rather a solid path to a better life.Combining the best of modern social science with practical wisdom, Baumeister and Tierney here share the definitive compendium of modern lessons in willpower. As our society has moved away from the virtues of thrift and self-denial, it often feels helpless because we face more temptations than ever. But we also have more knowledge and better tools for taking control of our lives. However we define happiness-a close- knit family, a satisfying career, financial security-we won't reach it without mastering self-control.

Everything is Obvious: Once You Know the Answer


Duncan J. Watts - 2011
    As sociologist and network science pioneer Duncan Watts explains in this provocative book, the explanations that we give for the outcomes that we observe in life—explanation that seem obvious once we know the answer—are less useful than they seem.Drawing on the latest scientific research, along with a wealth of historical and contemporary examples, Watts shows how common sense reasoning and history conspire to mislead us into believing that we understand more about the world of human behavior than we do; and in turn, why attempts to predict, manage, or manipulate social and economic systems so often go awry.It seems obvious, for example, that people respond to incentives; yet policy makers and managers alike frequently fail to anticipate how people will respond to the incentives they create. Social trends often seem to have been driven by certain influential people; yet marketers have been unable to identify these “influencers” in advance. And although successful products or companies always seem in retrospect to have succeeded because of their unique qualities, predicting the qualities of the next hit product or hot company is notoriously difficult even for experienced professionals.Only by understanding how and when common sense fails, Watts argues, can we improve how we plan for the future, as well as understand the present—an argument that has important implications in politics, business, and marketing, as well as in science and everyday life.

Invisible Influence: The Hidden Forces that Shape Behavior


Jonah Berger - 2016
    “Jonah Berger has done it again: written a fascinating book that brims with ideas and tools for how to think about the world.” —Charles Duhigg, author of The Power of HabitIf you’re like most people, you think your individual tastes and opinions drive your choices and behaviors. You wear a certain jacket because you liked how it looked. You picked a particular career because you found it interesting. The notion that our choices are driven by our own personal thoughts and opinions is patently obvious. Right? Wrong. Without our realizing it, other people’s behavior has a huge influence on everything we do at every moment of our lives, from the mundane to the momentous. Even strangers have an impact on our judgments and decisions: our attitudes toward a welfare policy shift if we’re told it is supported by Democrats versus Republicans (even though the policy is the same). But social influence doesn’t just lead us to do the same things as others. In some cases we imitate others around us. But in other cases we avoid particular choices or behaviors because other people are doing them. We stop listening to a band because they go mainstream. We skip buying the minivan because we don’t want to look like a soccer mom. By understanding how social influence works, we can decide when to resist and when to embrace it—and learn how we can use this knowledge to exercise more control over our own behavior. In Invisible Influence, Jonah Berger “is consistently entertaining, applying science to real life in surprising ways and explaining research through narrative. His book fascinates because it opens up the moving parts of a mysterious machine, allowing readers to watch them in action” (Publishers Weekly).

Barking Up the Wrong Tree: The Surprising Science Behind Why Everything You Know About Success Is (Mostly) Wrong


Eric Barker - 2017
    In Barking Up the Wrong Tree, Eric Barker reveals the extraordinary science behind what actually determines success and most importantly, how anyone can achieve it. You’ll learn:• Why valedictorians rarely become millionaires, and how your biggest weakness might actually be your greatest strength • Whether nice guys finish last and why the best lessons about cooperation come from gang members, pirates, and serial killers• Why trying to increase confidence fails and how Buddhist philosophy holds a superior solution• The secret ingredient to “grit” that Navy SEALs and disaster survivors leverage to keep going• How to find work-life balance using the strategy of Genghis Khan, the errors of Albert Einstein, and a little lesson from Spider-ManBy looking at what separates the extremely successful from the rest of us, we learn what we can do to be more like them—and find out in some cases why it’s good that we aren’t. Barking Up the Wrong Tree draws on startling statistics and surprising anecdotes to help you understand what works and what doesn’t so you can stop guessing at success and start living the life you want.

Mindwise: How We Understand What Others Think, Believe, Feel, and Want


Nicholas Epley - 2014
    It’s a sixth sense you use every day, in every personal and professional relationship you have. At its best, this ability allows you to achieve the most important goal in almost any life: connecting, deeply and intimately and honestly, to other human beings. At its worst, it is a source of misunderstanding and unnecessary conflict, leading to damaged relationships and broken dreams. How good are you at knowing the minds of others? How well can you guess what others think of you, know who really likes you, or tell when someone is lying? How well do you really understand the minds of those closest to you, from your spouse to your kids to your best friends? Do you really know what your coworkers, employees, competitors, or clients want?In this illuminating exploration of one of the great mysteries of the human mind, University of Chicago psychologist Nicholas Epley introduces us to what scientists have learned about our ability to understand the most complicated puzzle on the planet—other people—and the surprising mistakes we so routinely make. Why are we sometimes blind to the minds of others, treating them like objects or animals? Why do we sometimes talk to our cars, or the stars, as if there is a mind that can hear us? Why do we so routinely believe that others think, feel, and want what we do when, in fact, they do not? And why do we believe we understand our spouses, family, and friends so much better than we actually do? Mindwise will not turn other people into open books, but it will give you the wisdom to revolutionize how you think about them—and yourself.

The Art of Thinking Clearly


Rolf Dobelli - 2011
    But by knowing what they are and how to spot them, we can avoid them and make better choices-whether dealing with a personal problem or a business negotiation; trying to save money or make money; working out what we do or don't want in life: and how best to get it.Simple, clear and always surprising, this indispensable book will change the way you think and transform your decision-making-work, at home, every day. It reveals, in 99 short chapters, the most common errors of judgment, and how to avoid them.

Adaptive Markets: Financial Evolution at the Speed of Thought


Andrew W. Lo - 2017
    This is one of the biggest debates in economics and the value or futility of investment management and financial regulation hang on the outcome. In this groundbreaking book, Andrew Lo cuts through this debate with a new framework, the Adaptive Markets Hypothesis, in which rationality and irrationality coexist.Drawing on psychology, evolutionary biology, neuroscience, artificial intelligence, and other fields, Adaptive Markets shows that the theory of market efficiency isn't wrong but merely incomplete. When markets are unstable, investors react instinctively, creating inefficiencies for others to exploit. Lo's new paradigm explains how financial evolution shapes behavior and markets at the speed of thought--a fact revealed by swings between stability and crisis, profit and loss, and innovation and regulation.A fascinating intellectual journey filled with compelling stories, Adaptive Markets starts with the origins of market efficiency and its failures, turns to the foundations of investor behavior, and concludes with practical implications--including how hedge funds have become the Galapagos Islands of finance, what really happened in the 2008 meltdown, and how we might avoid future crises.An ambitious new answer to fundamental questions in economics, Adaptive Markets is essential reading for anyone who wants to know how markets really work.