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The fear of losing something motivates people more than the prospect of gaining something of equal value.
The most effective way of encouraging customers to purchase your product is to tell them how much money they are losing without insulation—as opposed to how much money they would save with it, even though the amount is exactly the same.
Evil is more powerful and more plentiful than good.
We are more sensitive to negative than to positive things.
We remember bad behavior longer than good—except, of course, when i...
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social loafing
rap
mitigated
Nothing that grows exponentially grows forever. Most politicians, economists, and journalists forget that. Such growth will eventually reach a limit.
courtier
When it comes to growth rates, do not trust your intuition. You don’t have any. Accept it. What really helps is a calculator or, with low growth rates, the magic number of 70.
Curb
The winner’s curse suggests that the winner of an auction often turns out to be the loser.
to spare the poor painter the winner’s curse.
Initial public offerings (IPOs) are also examples of auctions.
acquis...
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Astound...
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First, the real value of many things is uncertain. Additionally, the more interested parties, the greater the likelihood of an overly enthusiastic bid. Second, we want to outdo competitors.
In conclusion: Accept this piece of wisdom about auctions from Warren Buffett: “Don’t go.”
If you happen to work in an industry where they are inevitable, set a maximum price and deduct 20 percent from this to offset the winner’s curse. Write this number on a piece of paper and don’t go a cent over it.
“Every story has a face,”
Causality
fuzzy
tenure.
adversely.
Correlation
causality.
The halo effect
arbitrary
sneaky
halo effect: It works on a subconscious level.
stereotyping
The halo effect clouds our view,
head over heels
obstructs
Conjunction
C’est le ton qui fait la musique: it’s not what you say but how you say it.
In psychologists’ jargon, this technique is called framing.
