jeudi 4 octobre 2018

Observation about human nature

One of the things that amazes me the most in life, is how many people change floor to take a crap at work.

I admit, I'm one of them.

4 commentaires:

  1. Used to. Now, I really don't give a shit.

    My new hobby is prior to a meeting adjusting chairs to the most uncomfortable positions and seeing who will tough it out and who won't.

  2. I want to bring your attention to a SUBSET of "observations about human nature" called BEHAVIORAL ECONOMICS. Here's a definition of behavioral economics:
    a method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.
    I will include a couple of INEXPENSIVE titles to get you started in your study of behavioral economics if you are so inclined:

    Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics by Gary Belsky (both books are available at Amazon)

    Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard H Thaler (In 2017, this author was awarded the Nobel Prize in Economics for his contributions to behavioral economics).

  3. Markets are fueled by greed and by fear. The first principle to grasp in human nature and decision making is LOSS AVERSION.
    loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains: it is better to not lose $50,000 in the stock market than to make $50,000. Your "winning" $50,000 makes it possible for you to drive a nicer car. Your losing $50,000 may affect your survival or solvency.
    Going back further, if prehistoric man found another meal, he would just eat more. If he lost his only meal, he might starve. It's not the same stakes...even if it appears to be.
    Applied to stock markets, this theory of loss aversion probably leads us to conclude that markets can go down a lot faster and more severely in a short period of time than they can go up super fast.
    Economists have moved past their theory that all markets are rational and efficient at all times. If you'd like to read a bit more about this, here's the wikipedia article on LOSS AVERSION