cognitive bias

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pages: 267 words: 78,857

Discardia: More Life, Less Stuff by Dinah Sanders

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A. Roger Ekirch, Atul Gawande, big-box store, carbon footprint, clean water, clockwatching, cognitive bias, collaborative consumption, credit crunch, endowment effect, Firefox, game design, Inbox Zero, income per capita, index card, indoor plumbing, Internet Archive, Kevin Kelly, late fees, Marshall McLuhan, McMansion, Merlin Mann, side project, Silicon Valley, Stewart Brand

In describing this principle to me, counselor and writer (and my mother) Jinx McCombs, who studied with Dr. Goulding, said, “All four are real choices, and it's surprising how often people pick number two or number four.” What choices aren’t you enjoying now that you’ve made them? What were the other options that you could keep in mind for next time? Beware of cognitive bias and wrong-sized conclusions As you evaluate your current situation, your dreams, and what you may need to discard or add, watch out for two important things: cognitive bias and over- or undersized conclusions. Firstly, cognitive bias—a pattern of different judgment occurring for you in specific situations—can kick in when you worry about being unprepared. There is a world of difference between the overprotective response “that might come in handy for something maybe someday so I’ll keep it” and specific, common-to-you situational preparation, such as “I should carry a book and writing tools when I am doing errands where I might get stuck waiting.”

Allocate your resources primarily to your current goals. In my experience, the payoff for getting rid of 100% of the stuff for which you don't have a plan and don't wildly love is still worth it, even when you come up with a use for a small percentage of it later. Getting 90% of your unneeded items out of the way creates opportunity and energy, which makes dealing with the occasional 10% you need to get again much easier. Beware of cognitive bias in what you notice about your things, habits, projects, and even dreams. Would it stand out in your memory that you never needed something you got rid of? No. In fact, you might forget you ever had it in the first place. That 90% can fall from your awareness without a trace, leaving the rare exceptions to stand out and seem more significant than they actually are. I highly recommend Thomas Gilovich’s book, How We Know What Isn't So: The Fallibility of Human Reason in Everyday Life, as a great way to gain insight into some of the silly patterns of perception that can have you working against your own best interest.


pages: 284 words: 79,265

The Half-Life of Facts: Why Everything We Know Has an Expiration Date by Samuel Arbesman

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Albert Einstein, Alfred Russel Wallace, Amazon Mechanical Turk, Andrew Wiles, bioinformatics, British Empire, Cesare Marchetti: Marchetti’s constant, Chelsea Manning, Clayton Christensen, cognitive bias, cognitive dissonance, conceptual framework, David Brooks, demographic transition, double entry bookkeeping, double helix, Galaxy Zoo, guest worker program, Gödel, Escher, Bach, Ignaz Semmelweis: hand washing, index fund, invention of movable type, Isaac Newton, John Harrison: Longitude, Kevin Kelly, life extension, Marc Andreessen, meta analysis, meta-analysis, Milgram experiment, Nicholas Carr, p-value, Paul Erdős, Pluto: dwarf planet, publication bias, randomized controlled trial, Richard Feynman, Richard Feynman, Rodney Brooks, social graph, social web, text mining, the scientific method, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Tyler Cowen: Great Stagnation

Evolutionary psychology, far from sweeping our biases under the rug, embraces them, and even tries to understand the evolutionary benefit that might have accrued to what may be viewed as deficits. So what forms can factual inertia take? Look to the lyrics of Bradley Wray. In December 2009, Bradley Wray was preparing his high school students for a test in his Advanced Placement psychology class. Wray developed a moderately catchy song for his students that would help them review the material and posted a video of it online. What was the topic of this song? Cognitive bias. There is a whole set of psychological quirks we are saddled with as part of our evolutionary baggage. While these quirks might have helped us on the savannah to figure out how the seasons change and where food might be year after year, they are not always the most useful in our interconnected, highly complex, and fast-moving world. These quirks are known as cognitive biases, and there are lots of them, creating a publishing cottage industry devoted to chronicling them.

Many people are familiar with self-serving bias, even if they might not realize it: It happens all the time in sports. In hockey or soccer, if the team wins, the goal scorer is lauded. But if the team loses? The goalie gets the short end of the deal. The other players are the beneficiaries of a certain amount of self-serving bias—praise for success, without the burden of failure—at least that’s how the media portray it, even if they are not subject to this cognitive bias themselves. There are well over a hundred of these biases that have been cataloged. . . . IN the 1840s, Ignaz Semmelweis was a noted physician with a keen eye. While he was a young obstetrician working in the hospitals of Vienna, he noticed a curious difference between mothers who delivered in his division of the hospital and those who delivered at home, or using midwives in the other part of the hospital.

New York: Viking, 2010. p. 235. 174 they recanted their editorial: “A Correction.” New York Times, July 17, 1969. 174 Why do we believe in wrong, outdated facts?: Schulz, Kathryn. Being Wrong: Adventures in the Margin of Error. New York: Ecco, 2010. One of the main reasons, Schulz notes, that it is so easy to be wrong is very simple: Being wrong feels a lot like being right. 175 Bradley Wray was preparing his high school students: Wray, Bradley. “Cognitive Bias Song”; https://www.youtube.com/watch?v=3RsbmjNLQkc. 176 Nuland, Sherwin B. The Doctors’ Plague: Germs, Childbed Fever, and the Strange Story of Ignác Semmelweis. New York: W. W. Norton, 2003. Please note that the initial edition of my book was prey to some outdated information regarding the myth of Semmelweis. 177 akin to Daniel Kahneman’s idea of theory-induced blindness: Shirky, Clay. Cognitive Surplus: Creativity and Generosity in a Connected Age.


pages: 310 words: 82,592

Never Split the Difference: Negotiating as if Your Life Depended on It by Chris Voss, Tahl Raz

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banking crisis, Black Swan, clean water, cognitive bias, Daniel Kahneman / Amos Tversky, Donald Trump, framing effect, friendly fire, iterative process, loss aversion, market fundamentalism, price anchoring, telemarketer, ultimatum game, uranium enrichment

And so it went in negotiation classes: assuming the other side was acting rationally and selfishly in trying to maximize its position, the goal was to figure out how to respond in various scenarios to maximize one’s own value. This mentality baffled Kahneman, who from years in psychology knew that, in his words, “[I]t is self-evident that people are neither fully rational nor completely selfish, and that their tastes are anything but stable.” Through decades of research with Tversky, Kahneman proved that humans all suffer from Cognitive Bias, that is, unconscious—and irrational—brain processes that literally distort the way we see the world. Kahneman and Tversky discovered more than 150 of them. There’s the Framing Effect, which demonstrates that people respond differently to the same choice depending on how it is framed (people place greater value on moving from 90 percent to 100 percent—high probability to certainty—than from 45 percent to 55 percent, even though they’re both ten percentage points).

One of us was trying to gauge the mood of the bad guy taking the lead on the other end, and another was listening in for clues or “tells” that might give us a better read on what we were facing, and so on. Students of mine balk at this notion, asking, “Seriously, do you really need a whole team to . . . hear someone out?” The fact that the FBI has come to that conclusion, I tell them, should be a wake-up call. It’s really not that easy to listen well. We are easily distracted. We engage in selective listening, hearing only what we want to hear, our minds acting on a cognitive bias for consistency rather than truth. And that’s just the start. Most people approach a negotiation so preoccupied by the arguments that support their position that they are unable to listen attentively. In one of the most cited research papers in psychology,1 George A. Miller persuasively put forth the idea that we can process only about seven pieces of information in our conscious mind at any given moment.

., 143 calibrated, or open-ended, questions, 20, 141, 149, 150, 151–56, 243 Ackerman model and, 207 to analyze negotiation team and behind the table/Level II players, 171, 172 Assertive (bargaining style) and, 196 caution about using “why,” 153–54, 160, 203 Ecuador kidnapping and, 160, 165, 166, 167 to elicit information, 185 example, doctor and unhappy patient, 150, 155 examples to use, 154, 256 “forced empathy” and, 168 greatest-of-all-time question, 151, 168 “How” questions, 167–69, 181, 186 key lessons of, 160–61 Negotiation One Sheet and, 255–58 questions to identify and diffuse deal-killing issues, 256–57 questions to identify the behind-the-table deal killers, 256 responses to aggressiveness and, 141, 152, 159, 175 Rule of Three and, 177–78 script for, 157–58 tone of voice for, 167–68 when to use, 154 words to avoid in, 153 words to begin with, 153, 160 Camp, Jim, 78, 90 car-buying negotiations, 119, 188–90, 243 certainty effect, 127 Chandler, Raymond, 129 Chris discount, 179–80 clearing the barriers to agreement, 61–63, 72 Clinton, Hillary, 53 cognitive bias, 12 Cohen, Herb, 119 collaboration, 21 How/No questions and, 167–68 never create an enemy, 204–5 Collodi, Carlo, 178 Columbia Business School, 131 communication. See also active listening; calibrated, or open-ended, question; voice tones calibrated, or open-ended, question, 20, 141, 149, 150, 151–56, 165, 166, 167–69, 170, 174–75, 255–58 Chinese expression about, 111 control in, 160, 166 empathy as “soft” skill, 53 hidden aspects of, 77 “I” messages, 203–4 literal interpretations, mistake of, 77 lying and, 178 “no” and, 75–80 pronoun usage and person’s importance, 179, 187 7-38-55 Percent Rule, 176–77, 186 subtleties, spotting and interpreting, 173–76 uncovering lying, 176 using your own name (Chris discount), 179–80, 187 “yes” and, 80–81 “yes” and “no,” values inherent in, 86 compromise, 18–19, 115–16, 139 reasons for, 116 win-win and, 115, 253 control, 140–61 calibrated, or open-ended, question and, 141, 149, 150, 151–56 in communication, 160 creating the illusion of, 149–61, 166, 174–75 influence vs., 84 key lessons of, 160–61 lack of, and hostage mentality, 159 late-night FM DJ voice and, 33 as primal urge, 84 saying “no” and, 78–79, 86–92, 94 self-control, 156–59, 161, 202, 204 crisis negotiations, 4–5, 9–10, 13–16, 18–19, 54.


pages: 467 words: 116,902

The New Jim Crow: Mass Incarceration in the Age of Colorblindness by Michelle Alexander

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affirmative action, cognitive bias, Columbine, Corrections Corporation of America, deindustrialization, desegregation, ending welfare as we know it, friendly fire, Gunnar Myrdal, illegal immigration, land reform, large denomination, low skilled workers, mandatory minimum, mass incarceration, means of production, new economy, New Urbanism, pink-collar, profit motive, Ronald Reagan, Rosa Parks, trickle-down economics, upwardly mobile, War on Poverty, women in the workforce, zero-sum game

In fact, for nearly three decades, news stories regarding virtually all street crime have disproportionately featured African American offenders. One study suggests that the standard crime news “script” is so prevalent and so thoroughly racialized that viewers imagine a black perpetrator even when none exists. In that study, 60 percent of viewers who saw a story with no image falsely recalled seeing one, and 70 percent of those viewers believed the perpetrator to be African American.33 Decades of cognitive bias research demonstrates that both unconscious and conscious biases lead to discriminatory actions, even when an individual does not want to discriminate.34 The quotation commonly attributed to Nietzsche, that “there is no immaculate perception,” perfectly captures how cognitive schemas—thought structures—influence what we notice and how the things we notice get interpreted.35 Studies have shown that racial schemas operate not only as part of conscious, rational deliberations, but also automatically—without conscious awareness or intent.36 One study, for example, involved a video game that placed photographs of white and black individuals holding either a gun or other object (such as a wallet, soda can, or cell phone) into various photographic backgrounds.

Whether or not one believes racial discrimination in the drug war was inevitable, it should have been glaringly obvious in the 1980s and 1990s that an extraordinarily high risk of racial bias in the administration of criminal justice was present, given the way in which all crime had been framed in the media and in political discourse. Awareness of this risk did not require intimate familiarity with cognitive bias research. Anyone possessing a television set during this period would likely have had some awareness of the extent to which black men had been demonized in the War on Drugs. The risk that African Americans would be unfairly targeted should have been of special concern to the U.S. Supreme Court—the one branch of government charged with the responsibility of protecting “discrete and insular minorities” from the excesses of majoritarian democracy, and guaranteeing constitutional rights for groups deemed unpopular or subject to prejudice.45 Yet when the time came for the Supreme Court to devise the legal rules that would govern the War on Drugs, the Court adopted rules that would maximize—not minimize—the amount of racial discrimination that would likely occur.

Acevedo California’s Proposition California’s Proposition Campbell, Richard Capital Times (Madison, Wisconsin) Carroll, David Carrollton bus disaster (1988) Cato Institute Central Intelligence Agency (CIA) Chain Reaction (Edsall and Edsall) Chemerinsky, Erwin Cheney, Dick Chicago, Illinois: ex-offenders; police presence in ghetto communities; re-entry programs child-support debts chokeholds, lethal Chunn, Gwendolyn Civil Asset Forfeiture Reform Act (2000) Civil Rights Act (1866) Civil Rights Act (1964); Title VI civil rights advocacy, future of; changing the culture of law enforcement; collective denial by civil rights advocates; dismantling the mass incarceration system; and flawed public consensus; grassroots activism by formerly incarcerated men and women; human rights paradigm/ approach; Obama presidency; poor and working-class whites; and problem of colorblind advocacy; reconsidering affirmative action; reform work and movement building; reluctance to advocate on behalf of criminals; and sentencing; and trickle-down theories of racial justice Civil Rights Movement; backlash against; and black people who defied racial stereotypes; desegregation protests; and economic justice; and end of Jim Crow system; and federal legislation; and human rights approach; initial resistance from some African Americans; and King’s call for complete restructuring of society; Poor People’s Movement civil rights organizations/community; collective denial by; professionalization and conversion of grassroots movement into legal crusade; reluctance to advocate on behalf of criminals. See also civil rights advocacy, future of Clary, Edward Clinton, Bill/Clinton administration; federal drug programs; marijuana use; militarization of War on Drugs; public housing and eviction rules; “tough on crime” policies/legislation; and War on Drugs; welfare reform legislation Cloward, Richard cognitive bias research Cohen, Cathy Cohen, Stanley Cohen, William Cole, David Coley, Rebekah Levine colorblindness; and affirmative action; and black exceptionalism; and “interracial racial caste system,”; and mass incarceration; problem of flawed pursuit of; Reagan’s racialized campaign rhetoric; resisting temptation to ignore race in advocacy; and U.S. Constitution; and whites’ reluctance to acknowledge race Colvin, Claudette Common (rap artist) Community Oriented Policing Services (COPS) program Comprehensive Drug Abuse Prevent and Control Act (1970) Congressional Black Caucus (CBC) consent searches and traffic stops conservative philosophy of race relations (Reconstruction era) conspiracy theories and War on Drugs Constitution, U.S..


pages: 1,737 words: 491,616

Rationality: From AI to Zombies by Eliezer Yudkowsky

Albert Einstein, Alfred Russel Wallace, anthropic principle, anti-pattern, anti-work, Arthur Eddington, artificial general intelligence, availability heuristic, Bayesian statistics, Berlin Wall, Build a better mousetrap, Cass Sunstein, cellular automata, cognitive bias, cognitive dissonance, correlation does not imply causation, cosmological constant, creative destruction, Daniel Kahneman / Amos Tversky, dematerialisation, discovery of DNA, Douglas Hofstadter, Drosophila, effective altruism, experimental subject, Extropian, friendly AI, fundamental attribution error, Gödel, Escher, Bach, hindsight bias, index card, index fund, Isaac Newton, John Conway, John von Neumann, Long Term Capital Management, Louis Pasteur, mental accounting, meta analysis, meta-analysis, money market fund, Nash equilibrium, Necker cube, NP-complete, P = NP, pattern recognition, Paul Graham, Peter Thiel, Pierre-Simon Laplace, placebo effect, planetary scale, prediction markets, random walk, Ray Kurzweil, reversible computing, Richard Feynman, Richard Feynman, risk tolerance, Rubik’s Cube, Saturday Night Live, Schrödinger's Cat, scientific mainstream, sensible shoes, Silicon Valley, Silicon Valley startup, Singularitarianism, Solar eclipse in 1919, speech recognition, statistical model, Steven Pinker, strong AI, technological singularity, The Bell Curve by Richard Herrnstein and Charles Murray, the map is not the territory, the scientific method, Turing complete, Turing machine, ultimatum game, X Prize, Y Combinator, zero-sum game

When your method of learning about the world is biased, learning more may not help. Acquiring more data can even consistently worsen a biased prediction. If you’re used to holding knowledge and inquiry in high esteem, this is a scary prospect. If we want to be sure that learning more will help us, rather than making us worse off than we were before, we need to discover and correct for biases in our data. The idea of cognitive bias in psychology works in an analogous way. A cognitive bias is a systematic error in how we think, as opposed to a random error or one that’s merely caused by our ignorance. Whereas statistical bias skews a sample so that it less closely resembles a larger population, cognitive biases skew our beliefs so that they less accurately represent the facts, and they skew our decision-making so that it less reliably achieves our goals.

You may then overestimate how many red balls the urn contains because you wish the balls were mostly red. Here, your sample isn’t what’s biased. You’re what’s biased. Now that we’re talking about biased people, however, we have to be careful. Usually, when we call individuals or groups “biased,” we do it to chastise them for being unfair or partial. Cognitive bias is a different beast altogether. Cognitive biases are a basic part of how humans in general think, not the sort of defect we could blame on a terrible upbringing or a rotten personality.1 A cognitive bias is a systematic way that your innate patterns of thought fall short of truth (or some other attainable goal, such as happiness). Like statistical biases, cognitive biases can distort our view of reality, they can’t always be fixed by just gathering more data, and their effects can add up over time.

Like statistical biases, cognitive biases can distort our view of reality, they can’t always be fixed by just gathering more data, and their effects can add up over time. But when the miscalibrated measuring instrument you’re trying to fix is you, debiasing is a unique challenge. Still, this is an obvious place to start. For if you can’t trust your brain, how can you trust anything else? It would be useful to have a name for this project of overcoming cognitive bias, and of overcoming all species of error where our minds can come to undermine themselves. We could call this project whatever we’d like. For the moment, though, I suppose “rationality” is as good a name as any. Rational Feelings In a Hollywood movie, being “rational” usually means that you’re a stern, hyperintellectual stoic. Think Spock from Star Trek, who “rationally” suppresses his emotions, “rationally” refuses to rely on intuitions or impulses, and is easily dumbfounded and outmaneuvered upon encountering an erratic or “irrational” opponent.2 There’s a completely different notion of “rationality” studied by mathematicians, psychologists, and social scientists.


pages: 254 words: 72,929

The Age of the Infovore: Succeeding in the Information Economy by Tyler Cowen

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Albert Einstein, Asperger Syndrome, Cass Sunstein, cognitive bias, David Brooks, en.wikipedia.org, endowment effect, Flynn Effect, framing effect, Google Earth, impulse control, informal economy, Isaac Newton, loss aversion, Marshall McLuhan, Naomi Klein, neurotypical, new economy, Nicholas Carr, pattern recognition, phenotype, placebo effect, Richard Thaler, selection bias, Silicon Valley, the medium is the message, The Wealth of Nations by Adam Smith, theory of mind

The implication is that many so-called “normal” people are carrying around autism-contributing genes. A recent study showed that parents of autistic children were less likely to socialize and that those same parents were also less likely to make eye contact and more likely to read other people’s intentions by watching their mouths rather than their eyes, a common autistic trait. There’s also evidence that the parents of autistic children are more likely to have a cognitive bias toward the local processing of small bits of information, as we find among autistics. We’re again back to the idea that autistic cognitive strengths and weaknesses pervade our world in many ways, often unobserved. One recent population study suggests that autistic traits are distributed across the entire population in a smooth and normal fashion, rather than into two distinct and clumped groups of “autistic” and “non-autistic.”

CNN is of course a popular outlet and thus the story is presented in a way that many people can relate to or remember, and that means some oversimplification. In other words, the shallowness of many commonly told and commonly held stories is part of the price of our sociability and the need to share so much with so many other people. Sometimes that oversimplification is a price worth paying. But let’s recognize it for what it is, namely a cognitive bias that plagues how many people think about the world. PROBLEM #2: STORIES END UP SERVING DUAL AND CONFLICTING FUNCTIONS Part of what a focal point means is that you can’t fit too many stories, ideas, and data points into your head at once. Only some of them will stick out and be obvious or memorable. So if you think of “meeting places in New York City” a few well-known points come to mind. If your mind was flooded with all the unordered details at once, it would be harder and maybe impossible to come up with a focal locale for meeting the other person.


pages: 412 words: 115,266

The Moral Landscape: How Science Can Determine Human Values by Sam Harris

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Albert Einstein, banking crisis, Bayesian statistics, cognitive bias, end world poverty, endowment effect, energy security, experimental subject, framing effect, hindsight bias, impulse control, John Nash: game theory, loss aversion, meta analysis, meta-analysis, out of africa, pattern recognition, placebo effect, Ponzi scheme, Richard Feynman, Richard Feynman, risk tolerance, stem cell, Stephen Hawking, Steven Pinker, the scientific method, theory of mind, ultimatum game, World Values Survey

Liberal hankering for happiness and freedom might one day produce some very strident calls for stricter laws and tribal loyalty. Will this mean that liberals have become religious conservatives pining for the beehive? Or is the liberal notion of avoiding harm flexible enough to encompass the need for order and differences between in-group and out-group? There is also the question of whether conservatism contains an extra measure of cognitive bias—or outright hypocrisy—as the moral convictions of social conservatives are so regularly belied by their louche behavior. The most conservative regions of the United States tend to have the highest rates of divorce and teenage pregnancy, as well as the greatest appetite for pornography.59 Of course, it could be argued that social conservatism is the consequence of so much ambient sinning. But this seems an unlikely explanation—especially in those cases where a high level of conservative moralism and a predilection for sin can be found in a single person.

Evans, 2005; Kahneman, 2003; Kahneman, Krueger, Schkade, Schwarz, & Stone, 2006; Kahneman, Slovic, & Tversky, 1982; Kahneman & Tversky, 1996; Stanovich & West, 2000; Tversky & Kahneman, 1974. 37. Stanovich & West, 2000. 38. Fong et al., 1986/07. Once again, asking whether something is rationally or morally normative is distinct from asking whether it has been evolutionarily adaptive. Some psychologists have sought to minimize the significance of the research on cognitive bias by suggesting that subjects make decisions using heuristics that conferred adaptive fitness on our ancestors. As Stanovich and West (2000) observe, what serves the genes does not necessarily advance the interests of the individual. We could also add that what serves the individual in one context may not serve him in another. The cognitive and emotional mechanisms that may (or may not) have optimized us for face-to-face conflict (and its resolution) have clearly not prepared us to negotiate conflicts waged from afar—whether with email or other long-range weaponry. 39.

See also religion children: callousness/unemotional trait in, 99, 213n78 care about other people’s children, 40 corporal punishment of, 3, 214n88 decision to have children, 187–88 disgust felt by, 224n34 early experience of, 9–10 hospital care of, 76–77 infants’ ability to follow a person’s gaze, 57 infants’ perception of aggressors, 206n35 in Israeli kibbutzim, 73 kindness for, 38 murder of infant by religious conservatives, 158 neglect and abuse of, 9, 35, 95–96, 107–8, 199–201n14 in orphanages, 9, 200n14 parents’ attachment to, 73 religion and, 151 self-regulation of, 223n23 sexual abuse scandal in Catholic Church, 35, 199–201n14 China, 67 Christianity. See religion Churchland, Patricia, 68, 101–2, 196n18, 210n49 cingulotomy, 226n35 Cleckley, H. M., 214n87 Clinton, Bill, 133 cognitive bias. See bias Cohen, Jonathan, 217–18n111 Cohen, Mark, 152, 229n62, 232n19 Collins, Francis, 160–74, 235n69, 236n77 colonoscopies, 77, 184 common sense dualists, 151 communication. See language compatibilism, 217n111 computational theory, 220n17 conduct disorder, 213n76 confirmation bias, 223n26 consciousness, 32–33, 41–42, 62, 108–9, 158–59, 221–22n18, 235n66 consensus, 31–32, 34, 198, 198n6 consequentialism, 62, 67–73, 207n12, 208n20, 210–11n50 conservatives.


pages: 294 words: 81,292

Our Final Invention: Artificial Intelligence and the End of the Human Era by James Barrat

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3D printing, AI winter, Amazon Web Services, artificial general intelligence, Asilomar, Automated Insights, Bayesian statistics, Bernie Madoff, Bill Joy: nanobots, brain emulation, cellular automata, Chuck Templeton: OpenTable, cloud computing, cognitive bias, commoditize, computer vision, cuban missile crisis, Daniel Kahneman / Amos Tversky, Danny Hillis, data acquisition, don't be evil, drone strike, Extropian, finite state, Flash crash, friendly AI, friendly fire, Google Glasses, Google X / Alphabet X, Isaac Newton, Jaron Lanier, John Markoff, John von Neumann, Kevin Kelly, Law of Accelerating Returns, life extension, Loebner Prize, lone genius, mutually assured destruction, natural language processing, Nicholas Carr, optical character recognition, PageRank, pattern recognition, Peter Thiel, prisoner's dilemma, Ray Kurzweil, Rodney Brooks, Search for Extraterrestrial Intelligence, self-driving car, semantic web, Silicon Valley, Singularitarianism, Skype, smart grid, speech recognition, statistical model, stealth mode startup, stem cell, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, Stuxnet, superintelligent machines, technological singularity, The Coming Technological Singularity, Thomas Bayes, traveling salesman, Turing machine, Turing test, Vernor Vinge, Watson beat the top human players on Jeopardy!, zero day

Imagine if the Centers for Disease Control issued a serious warning about vampires (unlike their recent tongue-in-cheek alert about zombies). Because vampires have provided so much fun, it’d take time for the guffawing to stop, and the wooden stakes to come out. Maybe we’re in that period right now with AI, and only an accident or a near-death experience will jar us awake. Another reason AI and human extinction do not often receive serious consideration may be due to one of our psychological blind spots—a cognitive bias. Cognitive biases are open manholes on the avenues of our thinking. Israeli American psychologists Amos Tversky and Daniel Kahneman began developing the science of cognitive biases in 1972. Their basic idea is that we humans make decisions in irrational ways. That observation alone won’t earn you a Nobel Prize (Kahneman received one in 2002); the stunner is that we are irrational in scientifically verifiable patterns.

brain augmentation of, see intelligence augmentation basal ganglia in cerebral cortex in neurons in reverse engineering of synapses in uploading into computer Brautigan, Richard Brazil Brooks, Rodney Busy Child scenario Butler, Samuel CALO (Cognitive Assistant that Learns and Organizes) Carr, Nicholas cave diving Center for Applied Rationality (CFAR) Chandrashekar, Ashok chatbots chess-playing computers Deep Blue China Chinese Room Argument Cho, Seung-Hui Church, Alonso Churchill, Winston Church-Turing hypothesis Clarke, Arthur C. climate change cloud computing cognitive architectures OpenCog cognitive bias Cognitive Computing Coherent Extrapolated Volition (CEV) Colossus “Coming Technological Singularity, The” (Vinge) computational neuroscience computers, computing cloud detrimental effects from exponential growth in power of see also programming; software computer science consciousness creativity cybercrime Cyc Cycle Computing Cycorp DARPA (Defense Advanced Research Projects Agency) Darwin Machine Deep Blue de Garis, Hugo Dennett, Daniel Dijkstra, Edger DNA-related research Dongarra, Jack Drake, Francis drives creativity efficiency resource acquisition self-preservation Dugan, Regina Duqu Dyson, George ecophagy efficiency Einstein, Albert emotions energy grid Enigma Enron Eurisko evil extropians Fastow, Andrew Ferrucci, David financial scandals financial system Flame Foreign Affairs Freidenfelds, Jason Friendly AI Coherent Extrapolated Volition and definition of intelligence explosion and SyNAPSE and Future of Humanity Institute genetic algorithms genetic engineering genetic programming George, Dileep global warming Global Workspace Theory Goertzel, Benjamin Golden Rule Good, I.


pages: 292 words: 85,151

Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, and Cheaper Than Yours (And What to Do About It) by Salim Ismail, Yuri van Geest

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23andMe, 3D printing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, bioinformatics, bitcoin, Black Swan, blockchain, Burning Man, business intelligence, business process, call centre, chief data officer, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, cognitive bias, collaborative consumption, collaborative economy, commoditize, corporate social responsibility, cross-subsidies, crowdsourcing, cryptocurrency, dark matter, Dean Kamen, dematerialisation, discounted cash flows, distributed ledger, Edward Snowden, Elon Musk, en.wikipedia.org, ethereum blockchain, Galaxy Zoo, game design, Google Glasses, Google Hangouts, Google X / Alphabet X, gravity well, hiring and firing, Hyperloop, industrial robot, Innovator's Dilemma, intangible asset, Internet of things, Iridium satellite, Isaac Newton, Jeff Bezos, Kevin Kelly, Kickstarter, knowledge worker, Kodak vs Instagram, Law of Accelerating Returns, Lean Startup, life extension, lifelogging, loose coupling, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market design, means of production, minimum viable product, natural language processing, Netflix Prize, Network effects, new economy, Oculus Rift, offshore financial centre, p-value, PageRank, pattern recognition, Paul Graham, peer-to-peer, peer-to-peer model, Peter H. Diamandis: Planetary Resources, Peter Thiel, prediction markets, profit motive, publish or perish, Ray Kurzweil, recommendation engine, RFID, ride hailing / ride sharing, risk tolerance, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Silicon Valley, skunkworks, Skype, smart contracts, Snapchat, social software, software is eating the world, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, subscription business, supply-chain management, TaskRabbit, telepresence, telepresence robot, Tony Hsieh, transaction costs, Tyler Cowen: Great Stagnation, urban planning, WikiLeaks, winner-take-all economy, X Prize, Y Combinator, zero-sum game

It is also about (un)learning and adaptability. Over time, these tools can also be applied to Staff on Demand (e.g., Tongal) and Community & Crowd. DNA/neuro recruitment and team formation Recruitment and team formations based on DNA profiling (suitability for the job based on particular hormones, neurotransmitters and health risks) and neuro profiling (right attitude, emotions, focus, truth-telling, passion, avoiding cognitive bias). AIs will recommend which people should work together and how to form teams for different tasks. Peer learning and coaching Programming software schools such as MIT and France’s Ecole 42 have no faculty, relying instead on peer learning; such institutions are highly cost-effective. HR will copy these models for better knowledge-creation and skills-transfer between employees. P2P reputation systems Internal and external reputation measured by communities (Mode, GitHub, LoveMachine, Klout, LinkedIn, etc.).

Quantified Employee/teams Employee and team health monitoring provides actionable insights based on body health (fatigue, concentration, movement, rest and relaxation), thus helping to avoid mistakes, stress, productivity loss and burnout. Employee DNA, biome and biomarkers used to minimize health risks, resistance to flu, etc. Neuroenhancement Neurotechnology used to improve mood, employee capabilities (accelerated learning, focus, reading, sleep, mental state, avoiding cognitive bias) and help combat social phobias (nervousness and fear of contact or connection). Tools and services that help with the mental well-being of employees, such as Happify and ThriveOn. Combined with sensors, these tools teach wellness, resilience and other core life skills; they also measure their impact. Virtual Reality (VR), currently in limited use with Oculus Rift and Google Glass, and slated for future initiatives such as High Fidelity, will not only profoundly affect recruitment and collaboration, but will also have the potential to disrupt work as we know it today.


pages: 354 words: 91,875

The Willpower Instinct: How Self-Control Works, Why It Matters, and What You Can Doto Get More of It by Kelly McGonigal

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

banking crisis, bioinformatics, Cass Sunstein, choice architecture, cognitive bias, delayed gratification, game design, impulse control, lifelogging, loss aversion, meta analysis, meta-analysis, phenotype, Richard Thaler, Wall-E, Walter Mischel

This leads to a second problem: When you try to push a thought away, and it keeps coming back to your mind, you are more likely to assume that it must be true. Why else would the thought keep resurfacing? We trust that our thoughts are important sources of information. When a thought becomes more frequent and harder to pull yourself away from, you will naturally assume that it is an urgent message that you should pay attention to. This cognitive bias seems to be hardwired in the human brain. We estimate how likely or true something is by the ease with which we can bring it to mind. This can have unsettling consequences when we try to push a worry or desire out of our minds. For example, because it’s easy to remember news stories about plane crashes (especially if you are a fearful flier handing over your boarding pass), we tend to overestimate the likelihood of being in a crash.

putting the future on sale time to wait, time to give in value of precommitment Willpower Experiment Lower Your Discount Rate Meet Your Future Self Precommit Your Future Self Wait Ten Minutes internal conflict ironic rebound avoiding I want, I will, I won’t neuroscience of “I want” power frustrated mom finds her want power “I won’t” power avoiding ironic rebound chocoholic takes inspiration from Hershey’s Kisses cognitive bias daughter makes peace with her anger inner acceptance, outer control Under the Microscope Investigating Ironic Rebound What’s on Your Most-Wanted List? no-dieting diet no smoking power of acceptance social anxiety disorder surfing urge to complain thought suppression dieting negativity thought suppression doesn’t work “white bears,” Willpower Experiment Accept Those Cravings—Just Don’t Act on Them Feel What You Feel, But Don’t Believe Everything You Think Surf the Urge Turn Your “I Won’t” Into “I Will,” Kivetz, Ran know thyself Knutson, Brian Kotchen, Matthew J.


pages: 403 words: 111,119

Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

That much has been agreed upon since the 1950s when Herbert Simon broke rank with his fellow economists and started to study how people actually behaved, finding their rationality to be severely ‘bounded’. His findings, augmented by those of psychologists Daniel Kahneman and Amos Tversky in the 1970s, gave birth to the field now known as behavioural economics, which studies the many kinds of ‘cognitive bias’ that systematically cause humans to deviate from the ideal model of rationality. Examples abound. We (the WEIRD ones, at least) typically exhibit: availability bias – making decisions on the basis of more recent and more accessible information; loss aversion – the strong preference to avoid a loss rather than to make an equivalent gain; selective cognition – taking on board facts and arguments that fit with our existing frames; and risk bias – underestimating the likelihood of extreme events, while overestimating our ability to cope with them.

Page numbers in italics denote illustrations A Aalborg, Denmark, 290 Abbott, Anthony ‘Tony’, 31 ABCD group, 148 Abramovitz, Moses, 262 absolute decoupling, 260–61 Acemoglu, Daron, 86 advertising, 58, 106–7, 112, 281 Agbodjinou, Sénamé, 231 agriculture, 5, 46, 72–3, 148, 155, 178, 181, 183 Alaska, 9 Alaska Permanent Fund, 194 Alperovitz, Gar, 177 alternative enterprise designs, 190–91 altruism, 100, 104 Amazon, 192, 196, 276 Amazon rainforest, 105–6, 253 American Economic Association, 3 American Enterprise Institute, 67 American Tobacco Corporation, 107 Andes, 54 animal spirits, 110 Anthropocene epoch, 48, 253 anthropocentrism, 115 Apertuso, 230 Apple, 85, 192 Archer Daniels Midland (ADM), 148 Arendt, Hannah, 115–16 Argentina, 55, 274 Aristotle, 32, 272 Arrow, Kenneth, 134 Articles of Association and Memoranda, 233 Arusha, Tanzania, 202 Asia Wage Floor Alliance, 177 Asian financial crisis (1997), 90 Asknature.org, 232 Athens, 57 austerity, 163 Australia, 31, 103, 177, 180, 211, 224–6, 255, 260 Austria, 263, 274 availability bias, 112 AXIOM, 230 Axtell, Robert, 150 Ayres, Robert, 263 B B Corp, 241 Babylon, 13 Baker, Josephine, 157 balancing feedback loops, 138–41, 155, 271 Ballmer, Steve, 231 Bangla Pesa, 185–6, 293 Bangladesh, 10, 226 Bank for International Settlements, 256 Bank of America, 149 Bank of England, 145, 147, 256 banking, see under finance Barnes, Peter, 201 Barroso, José Manuel, 41 Bartlett, Albert Allen ‘Al’, 247 basic income, 177, 194, 199–201 basic personal values, 107–9 Basle, Switzerland, 80 Bauwens, Michel, 197 Beckerman, Wilfred, 258 Beckham, David, 171 Beech-Nut Packing Company, 107 behavioural economics, 11, 111–14 behavioural psychology, 103, 128 Beinhocker, Eric, 158 Belgium, 236, 252 Bentham, Jeremy, 98 Benyus, Janine, 116, 218, 223–4, 227, 232, 237, 241 Berger, John, 12, 281 Berlin Wall, 141 Bermuda, 277 Bernanke, Ben, 146 Bernays, Edward, 107, 112, 281–3 Bhopal gas disaster (1984), 9 Bible, 19, 114, 151 Big Bang (1986), 87 billionaires, 171, 200, 289 biodiversity, 10, 46, 48–9, 52, 85, 115, 155, 208, 210, 242, 299 as common pool resource, 201 and land conversion, 49 and inequality, 172 and reforesting, 50 biomass, 73, 118, 210, 212, 221 biomimicry, 116, 218, 227, 229 bioplastic, 224, 293 Birmingham, West Midlands, 10 Black, Fischer, 100–101 Blair, Anthony ‘Tony’, 171 Blockchain, 187, 192 blood donation, 104, 118 Body Shop, The, 232–4 Bogotá, Colombia, 119 Bolivia, 54 Boston, Massachusetts, 3 Bowen, Alex, 261 Bowles, Sam, 104 Box, George, 22 Boyce, James, 209 Brasselberg, Jacob, 187 Brazil, 124, 226, 281, 290 bread riots, 89 Brisbane, Australia, 31 Brown, Gordon, 146 Brynjolfsson, Erik, 193, 194, 258 Buddhism, 54 buen vivir, 54 Bullitt Center, Seattle, 217 Bunge, 148 Burkina Faso, 89 Burmark, Lynell, 13 business, 36, 43, 68, 88–9 automation, 191–5, 237, 258, 278 boom and bust, 246 and circular economy, 212, 215–19, 220, 224, 227–30, 232–4, 292 and complementary currencies, 184–5, 292 and core economy, 80 and creative destruction, 142 and feedback loops, 148 and finance, 183, 184 and green growth, 261, 265, 269 and households, 63, 68 living metrics, 241 and market, 68, 88 micro-businesses, 9 and neoliberalism, 67, 87 ownership, 190–91 and political funding, 91–2, 171–2 and taxation, 23, 276–7 workers’ rights, 88, 91, 269 butterfly economy, 220–42 C C–ROADS (Climate Rapid Overview and Decision Support), 153 C40 network, 280 calculating man, 98 California, United States, 213, 224, 293 Cambodia, 254 Cameron, David, 41 Canada, 196, 255, 260, 281, 282 cancer, 124, 159, 196 Capital Institute, 236 carbon emissions, 49–50, 59, 75 and decoupling, 260, 266 and forests, 50, 52 and inequality, 58 reduction of, 184, 201, 213, 216–18, 223–7, 239–41, 260, 266 stock–flow dynamics, 152–4 taxation, 201, 213 Cargill, 148 Carney, Mark, 256 Caterpillar, 228 Catholic Church, 15, 19 Cato Institute, 67 Celts, 54 central banks, 6, 87, 145, 146, 147, 183, 184, 256 Chang, Ha-Joon, 82, 86, 90 Chaplin, Charlie, 157 Chiapas, Mexico, 121–2 Chicago Board Options Exchange (CBOE), 100–101 Chicago School, 34, 99 Chile, 7, 42 China, 1, 7, 48, 154, 289–90 automation, 193 billionaires, 200, 289 greenhouse gas emissions, 153 inequality, 164 Lake Erhai doughnut analysis, 56 open-source design, 196 poverty reduction, 151, 198 renewable energy, 239 tiered pricing, 213 Chinese Development Bank, 239 chrematistics, 32, 273 Christianity, 15, 19, 114, 151 cigarettes, 107, 124 circular economy, 220–42, 257 Circular Flow diagram, 19–20, 28, 62–7, 64, 70, 78, 87, 91, 92, 93, 262 Citigroup, 149 Citizen Reaction Study, 102 civil rights movement, 77 Cleveland, Ohio, 190 climate change, 1, 3, 5, 29, 41, 45–53, 63, 74, 75–6, 91, 141, 144, 201 circular economy, 239, 241–2 dynamics of, 152–5 and G20, 31 and GDP growth, 255, 256, 260, 280 and heuristics, 114 and human rights, 10 and values, 126 climate positive cities, 239 closed systems, 74 coffee, 221 cognitive bias, 112–14 Colander, David, 137 Colombia, 119 common-pool resources, 82–3, 181, 201–2 commons, 69, 82–4, 287 collaborative, 78, 83, 191, 195, 196, 264, 292 cultural, 83 digital, 82, 83, 192, 197, 281 and distribution, 164, 180, 181–2, 205, 267 Embedded Economy, 71, 73, 77–8, 82–4, 85, 92 knowledge, 197, 201–2, 204, 229, 231, 292 commons and money creation, see complementary currencies natural, 82, 83, 180, 181–2, 201, 265 and regeneration, 229, 242, 267, 292 and state, 85, 93, 197, 237 and systems, 160 tragedy of, 28, 62, 69, 82, 181 triumph of, 83 and values, 106, 108 Commons Trusts, 201 complementary currencies, 158, 182–8, 236, 292 complex systems, 28, 129–62 complexity science, 136–7 Consumer Reaction Study, 102 consumerism, 58, 102, 121, 280–84 cooking, 45, 80, 186 Coote, Anna, 278 Copenhagen, Denmark, 124 Copernicus, Nicolaus, 14–15 copyright, 195, 197, 204 core economy, 79–80 Corporate To Do List, 215–19 Costa Rica, 172 Council of Economic Advisers, US, 6, 37 Cox, Jo, 117 cradle to cradle, 224 creative destruction, 142 Cree, 282 Crompton, Tom, 125–6 cross-border flows, 89–90 crowdsourcing, 204 cuckoos, 32, 35, 36, 38, 40, 54, 60, 159, 244, 256, 271 currencies, 182–8, 236, 274, 292 D da Vinci, Leonardo, 13, 94–5 Dallas, Texas, 120 Daly, Herman, 74, 143, 271 Danish Nudging Network, 124 Darwin, Charles, 14 Debreu, Gerard, 134 debt, 37, 146–7, 172–3, 182–5, 247, 255, 269 decoupling, 193, 210, 258–62, 273 defeat device software, 216 deforestation, 49–50, 74, 208, 210 degenerative linear economy, 211–19, 222–3, 237 degrowth, 244 DeMartino, George, 161 democracy, 77, 171–2, 258 demurrage, 274 Denmark, 180, 275, 290 deregulation, 82, 87, 269 derivatives, 100–101, 149 Devas, Charles Stanton, 97 Dey, Suchitra, 178 Diamond, Jared, 154 diarrhoea, 5 differential calculus, 131, 132 digital revolution, 191–2, 264 diversify–select–amplify, 158 double spiral, 54 Doughnut model, 10–11, 11, 23–5, 44, 51 and aspiration, 58–9, 280–84 big picture, 28, 42, 61–93 distribution, 29, 52, 57, 58, 76, 93, 158, 163–205 ecological ceiling, 10, 11, 44, 45, 46, 49, 51, 218, 254, 295, 298 goal, 25–8, 31–60 and governance, 57, 59 growth agnosticism, 29–30, 243–85 human nature, 28–9, 94–128 and population, 57–8 regeneration, 29, 158, 206–42 social foundation, 10, 11, 44, 45, 49, 51, 58, 77, 174, 200, 254, 295–6 systems, 28, 129–62 and technology, 57, 59 Douglas, Margaret, 78–9 Dreyfus, Louis, 148 ‘Dumb and Dumber in Macroeconomics’ (Solow), 135 Durban, South Africa, 214 E Earning by Learning, 120 Earth-system science, 44–53, 115, 216, 288, 298 Easter Island, 154 Easterlin, Richard, 265–6 eBay, 105, 192 eco-literacy, 115 ecological ceiling, 10, 11, 44, 45, 46, 49, 51, 218, 254, 295, 298 Ecological Performance Standards, 241 Econ 101 course, 8, 77 Economics (Lewis), 114 Economics (Samuelson), 19–20, 63–7, 70, 74, 78, 86, 91, 92, 93, 262 Economy for the Common Good, 241 ecosystem services, 7, 116, 269 Ecuador, 54 education, 9, 43, 45, 50–52, 85, 169–70, 176, 200, 249, 279 economic, 8, 11, 18, 22, 24, 36, 287–93 environmental, 115, 239–40 girls’, 57, 124, 178, 198 online, 83, 197, 264, 290 pricing, 118–19 efficient market hypothesis, 28, 62, 68, 87 Egypt, 48, 89 Eisenstein, Charles, 116 electricity, 9, 45, 236, 240 and Bangla Pesa, 186 cars, 231 Ethereum, 187–8 and MONIAC, 75, 262 pricing, 118, 213 see also renewable energy Elizabeth II, Queen of the United Kingdom, 145 Ellen MacArthur Foundation, 220 Embedded Economy, 71–93, 263 business, 88–9 commons, 82–4 Earth, 72–6 economy, 77–8 finance, 86–8 household, 78–81 market, 81–2 power, 91–92 society, 76–7 state, 84–6 trade, 89–90 employment, 36, 37, 51, 142, 176 automation, 191–5, 237, 258, 278 labour ownership, 188–91 workers’ rights, 88, 90, 269 Empty World, 74 Engels, Friedrich, 88 environment and circular economy, 220–42, 257 conservation, 121–2 and degenerative linear economy, 211–19, 222–3 degradation, 5, 9, 10, 29, 44–53, 74, 154, 172, 196, 206–42 education on, 115, 239–40 externalities, 152 fair share, 216–17 and finance, 234–7 generosity, 218–19, 223–7 green growth, 41, 210, 243–85 nudging, 123–5 taxation and quotas, 213–14, 215 zero impact, 217–18, 238, 241 Environmental Dashboard, 240–41 environmental economics, 7, 11, 114–16 Environmental Kuznets Curve, 207–11, 241 environmental space, 54 Epstein, Joshua, 150 equilibrium theory, 134–62 Ethereum, 187–8 ethics, 160–62 Ethiopia, 9, 226, 254 Etsy, 105 Euclid, 13, 15 European Central Bank, 145, 275 European Commission, 41 European Union (EU), 92, 153, 210, 222, 255, 258 Evergreen Cooperatives, 190 Evergreen Direct Investing (EDI), 273 exogenous shocks, 141 exponential growth, 39, 246–85 externalities, 143, 152, 213 Exxon Valdez oil spill (1989), 9 F Facebook, 192 fair share, 216–17 Fama, Eugene, 68, 87 fascism, 234, 277 Federal Reserve, US, 87, 145, 146, 271, 282 feedback loops, 138–41, 143, 148, 155, 250, 271 feminist economics, 11, 78–81, 160 Ferguson, Thomas, 91–2 finance animal spirits, 110 bank runs, 139 Black–Scholes model, 100–101 boom and bust, 28–9, 110, 144–7 and Circular Flow, 63–4, 87 and complex systems, 134, 138, 139, 140, 141, 145–7 cross-border flows, 89 deregulation, 87 derivatives, 100–101, 149 and distribution, 169, 170, 173, 182–4, 198–9, 201 and efficient market hypothesis, 63, 68 and Embedded Economy, 71, 86–8 and financial-instability hypothesis, 87, 146 and GDP growth, 38 and media, 7–8 mobile banking, 199–200 and money creation, 87, 182–5 and regeneration, 227, 229, 234–7 in service to life, 159, 234–7 stakeholder finance, 190 and sustainability, 216, 235–6, 239 financial crisis (2008), 1–4, 5, 40, 63, 86, 141, 144, 278, 290 and efficient market hypothesis, 87 and equilibrium theory, 134, 145 and financial-instability hypothesis, 87 and inequality, 90, 170, 172, 175 and money creation, 182 and worker’s rights, 278 financial flows, 89 Financial Times, 183, 266, 289 financial-instability hypothesis, 87, 146 First Green Bank, 236 First World War (1914–18), 166, 170 Fisher, Irving, 183 fluid values, 102, 106–9 food, 3, 43, 45, 50, 54, 58, 59, 89, 198 food banks, 165 food price crisis (2007–8), 89, 90, 180 Ford, 277–8 foreign direct investment, 89 forest conservation, 121–2 fossil fuels, 59, 73, 75, 92, 212, 260, 263 Foundations of Economic Analysis (Samuelson), 17–18 Foxconn, 193 framing, 22–3 France, 43, 165, 196, 238, 254, 256, 281, 290 Frank, Robert, 100 free market, 33, 37, 67, 68, 70, 81–2, 86, 90 free open-source hardware (FOSH), 196–7 free open-source software (FOSS), 196 free trade, 70, 90 Freeman, Ralph, 18–19 freshwater cycle, 48–9 Freud, Sigmund, 107, 281 Friedman, Benjamin, 258 Friedman, Milton, 34, 62, 66–9, 84–5, 88, 99, 183, 232 Friends of the Earth, 54 Full World, 75 Fuller, Buckminster, 4 Fullerton, John, 234–6, 273 G G20, 31, 56, 276, 279–80 G77, 55 Gal, Orit, 141 Gandhi, Mohandas, 42, 293 Gangnam Style, 145 Gardens of Democracy, The (Liu & Hanauer), 158 gender equality, 45, 51–2, 57, 78–9, 85, 88, 118–19, 124, 171, 198 generosity, 218–19, 223–9 geometry, 13, 15 George, Henry, 149, 179 Georgescu-Roegen, Nicholas, 252 geothermal energy, 221 Gerhardt, Sue, 283 Germany, 2, 41, 100, 118, 165, 189, 211, 213, 254, 256, 260, 274 Gessel, Silvio, 274 Ghent, Belgium, 236 Gift Relationship, The (Titmuss), 118–19 Gigerenzer, Gerd, 112–14 Gintis, Herb, 104 GiveDirectly, 200 Glass–Steagall Act (1933), 87 Glennon, Roger, 214 Global Alliance for Tax Justice, 277 global material footprints, 210–11 Global Village Construction Set, 196 globalisation, 89 Goerner, Sally, 175–6 Goffmann, Erving, 22 Going for Growth, 255 golden rule, 91 Goldman Sachs, 149, 170 Gómez-Baggethun, Erik, 122 Goodall, Chris, 211 Goodwin, Neva, 79 Goody, Jade, 124 Google, 192 Gore, Albert ‘Al’, 172 Gorgons, 244, 256, 257, 266 graffiti, 15, 25, 287 Great Acceleration, 46, 253–4 Great Depression (1929–39), 37, 70, 170, 173, 183, 275, 277, 278 Great Moderation, 146 Greece, Ancient, 4, 13, 32, 48, 54, 56–7, 160, 244 green growth, 41, 210, 243–85 Greenham, Tony, 185 greenhouse gas emissions, 31, 46, 50, 75–6, 141, 152–4 and decoupling, 260, 266 and Environmental Kuznets Curve, 208, 210 and forests, 50, 52 and G20, 31 and inequality, 58 reduction of, 184, 201–2, 213, 216–18, 223–7, 239–41, 256, 259–60, 266, 298 stock–flow dynamics, 152–4 and taxation, 201, 213 Greenland, 141, 154 Greenpeace, 9 Greenspan, Alan, 87 Greenwich, London, 290 Grenoble, France, 281 Griffiths, Brian, 170 gross domestic product (GDP), 25, 31–2, 35–43, 57, 60, 84, 164 as cuckoo, 32, 35, 36, 38, 40, 54, 60, 159, 244, 256, 271 and Environmental Kuznets Curve, 207–11 and exponential growth, 39, 53, 246–85 and growth agnosticism, 29–30, 240, 243–85 and inequality, 173 and Kuznets Curve, 167, 173, 188–9 gross national product (GNP), 36–40 Gross World Product, 248 Grossman, Gene, 207–8, 210 ‘grow now, clean up later’, 207 Guatemala, 196 H Haifa, Israel, 120 Haldane, Andrew, 146 Han Dynasty, 154 Hanauer, Nick, 158 Hansen, Pelle, 124 Happy Planet Index, 280 Hardin, Garrett, 69, 83, 181 Harvard University, 2, 271, 290 von Hayek, Friedrich, 7–8, 62, 66, 67, 143, 156, 158 healthcare, 43, 50, 57, 85, 123, 125, 170, 176, 200, 269, 279 Heilbroner, Robert, 53 Henry VIII, King of England and Ireland, 180 Hepburn, Cameron, 261 Herbert Simon, 111 heuristics, 113–14, 118, 123 high-income countries growth, 30, 244–5, 254–72, 282 inequality, 165, 168, 169, 171 labour, 177, 188–9, 278 overseas development assistance (ODA), 198–9 resource intensive lifestyles, 46, 210–11 trade, 90 Hippocrates, 160 History of Economic Analysis (Schumpeter), 21 HIV/AIDS, 123 Holocene epoch, 46–8, 75, 115, 253 Homo economicus, 94–103, 109, 127–8 Homo sapiens, 38, 104, 130 Hong Kong, 180 household, 78 housing, 45, 59, 176, 182–3, 269 Howe, Geoffrey, 67 Hudson, Michael, 183 Human Development Index, 9, 279 human nature, 28 human rights, 10, 25, 45, 49, 50, 95, 214, 233 humanistic economics, 42 hydropower, 118, 260, 263 I Illinois, United States, 179–80 Imago Mundi, 13 immigration, 82, 199, 236, 266 In Defense of Economic Growth (Beckerman), 258 Inclusive Wealth Index, 280 income, 51, 79–80, 82, 88, 176–8, 188–91, 194, 199–201 India, 2, 9, 10, 42, 124, 164, 178, 196, 206–7, 242, 290 Indonesia, 90, 105–6, 164, 168, 200 Indus Valley civilisation, 48 inequality, 1, 5, 25, 41, 63, 81, 88, 91, 148–52, 209 and consumerism, 111 and democracy, 171 and digital revolution, 191–5 and distribution, 163–205 and environmental degradation, 172 and GDP growth, 173 and greenhouse gas emissions, 58 and intellectual property, 195–8 and Kuznets Curve, 29, 166–70, 173–4 and labour ownership, 188–91 and land ownership, 178–82 and money creation, 182–8 and social welfare, 171 Success to the Successful, 148, 149, 151, 166 inflation, 36, 248, 256, 275 insect pollination services, 7 Institute of Economic Affairs, 67 institutional economics, 11 intellectual property rights, 195–8, 204 interest, 36, 177, 182, 184, 275–6 Intergovernmental Panel on Climate Change, 25 International Monetary Fund (IMF), 170, 172, 173, 183, 255, 258, 271 Internet, 83–4, 89, 105, 192, 202, 264 Ireland, 277 Iroquois Onondaga Nation, 116 Israel, 100, 103, 120 Italy, 165, 196, 254 J Jackson, Tim, 58 Jakubowski, Marcin, 196 Jalisco, Mexico, 217 Japan, 168, 180, 211, 222, 254, 256, 263, 275 Jevons, William Stanley, 16, 97–8, 131, 132, 137, 142 John Lewis Partnership, 190 Johnson, Lyndon Baines, 37 Johnson, Mark, 38 Johnson, Todd, 191 JPMorgan Chase, 149, 234 K Kahneman, Daniel, 111 Kamkwamba, William, 202, 204 Kasser, Tim, 125–6 Keen, Steve, 146, 147 Kelly, Marjorie, 190–91, 233 Kennedy, John Fitzgerald, 37, 250 Kennedy, Paul, 279 Kenya, 118, 123, 180, 185–6, 199–200, 226, 292 Keynes, John Maynard, 7–8, 22, 66, 69, 134, 184, 251, 277–8, 284, 288 Kick It Over movement, 3, 289 Kingston, London, 290 Knight, Frank, 66, 99 knowledge commons, 202–4, 229, 292 Kokstad, South Africa, 56 Kondratieff waves, 246 Korzybski, Alfred, 22 Krueger, Alan, 207–8, 210 Kuhn, Thomas, 22 Kumhof, Michael, 172 Kuwait, 255 Kuznets, Simon, 29, 36, 39–40, 166–70, 173, 174, 175, 204, 207 KwaZulu Natal, South Africa, 56 L labour ownership, 188–91 Lake Erhai, Yunnan, 56 Lakoff, George, 23, 38, 276 Lamelara, Indonesia, 105–6 land conversion, 49, 52, 299 land ownership, 178–82 land-value tax, 73, 149, 180 Landesa, 178 Landlord’s Game, The, 149 law of demand, 16 laws of motion, 13, 16–17, 34, 129, 131 Lehman Brothers, 141 Leopold, Aldo, 115 Lesotho, 118, 199 leverage points, 159 Lewis, Fay, 178 Lewis, Justin, 102 Lewis, William Arthur, 114, 167 Lietaer, Bernard, 175, 236 Limits to Growth, 40, 154, 258 Linux, 231 Liu, Eric, 158 living metrics, 240–42 living purpose, 233–4 Lomé, Togo, 231 London School of Economics (LSE), 2, 34, 65, 290 London Underground, 12 loss aversion, 112 low-income countries, 90, 164–5, 168, 173, 180, 199, 201, 209, 226, 254, 259 Lucas, Robert, 171 Lula da Silva, Luiz Inácio, 124 Luxembourg, 277 Lyle, John Tillman, 214 Lyons, Oren, 116 M M–PESA, 199–200 MacDonald, Tim, 273 Machiguenga, 105–6 MacKenzie, Donald, 101 macroeconomics, 36, 62–6, 76, 80, 134–5, 145, 147, 150, 244, 280 Magie, Elizabeth, 149, 153 Malala effect, 124 malaria, 5 Malawi, 118, 202, 204 Malaysia, 168 Mali, Taylor, 243 Malthus, Thomas, 252 Mamsera Rural Cooperative, 190 Manhattan, New York, 9, 41 Mani, Muthukumara, 206 Manitoba, 282 Mankiw, Gregory, 2, 34 Mannheim, Karl, 22 Maoris, 54 market, 81–2 and business, 88 circular flow, 64 and commons, 83, 93, 181, 200–201 efficiency of, 28, 62, 68, 87, 148, 181 and equilibrium theory, 131–5, 137, 143–7, 155, 156 free market, 33, 37, 67–70, 90, 208 and households, 63, 69, 78, 79 and maxi-max rule, 161 and pricing, 117–23, 131, 160 and rational economic man, 96, 100–101, 103, 104 and reciprocity, 105, 106 reflexivity of, 144–7 and society, 69–70 and state, 84–6, 200, 281 Marshall, Alfred, 17, 98, 133, 165, 253, 282 Marx, Karl, 88, 142, 165, 272 Massachusetts Institute of Technology (MIT), 17–20, 152–5 massive open online courses (MOOCs), 290 Matthew Effect, 151 Max-Neef, Manfred, 42 maxi-max rule, 161 maximum wage, 177 Maya civilisation, 48, 154 Mazzucato, Mariana, 85, 195, 238 McAfee, Andrew, 194, 258 McDonough, William, 217 Meadows, Donella, 40, 141, 159, 271, 292 Medusa, 244, 257, 266 Merkel, Angela, 41 Messerli, Elspeth, 187 Metaphors We Live By (Lakoff & Johnson), 38 Mexico, 121–2, 217 Michaels, Flora S., 6 micro-businesses, 9, 173, 178 microeconomics, 132–4 microgrids, 187–8 Micronesia, 153 Microsoft, 231 middle class, 6, 46, 58 middle-income countries, 90, 164, 168, 173, 180, 226, 254 migration, 82, 89–90, 166, 195, 199, 236, 266, 286 Milanovic, Branko, 171 Mill, John Stuart, 33–4, 73, 97, 250, 251, 283, 284, 288 Millo, Yuval, 101 minimum wage, 82, 88, 176 Minsky, Hyman, 87, 146 Mises, Ludwig von, 66 mission zero, 217 mobile banking, 199–200 mobile phones, 222 Model T revolution, 277–8 Moldova, 199 Mombasa, Kenya, 185–6 Mona Lisa (da Vinci), 94 money creation, 87, 164, 177, 182–8, 205 MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262 Monoculture (Michaels), 6 Monopoly, 149 Mont Pelerin Society, 67, 93 Moral Consequences of Economic Growth, The (Friedman), 258 moral vacancy, 41 Morgan, Mary, 99 Morogoro, Tanzania, 121 Moyo, Dambisa, 258 Muirhead, Sam, 230, 231 MultiCapital Scorecard, 241 Murphy, David, 264 Murphy, Richard, 185 musical tastes, 110 Myriad Genetics, 196 N national basic income, 177 Native Americans, 115, 116, 282 natural capital, 7, 116, 269 Natural Economic Order, The (Gessel), 274 Nedbank, 216 negative externalities, 213 negative interest rates, 275–6 neoclassical economics, 134, 135 neoliberalism, 7, 62–3, 67–70, 81, 83, 84, 88, 93, 143, 170, 176 Nepal, 181, 199 Nestlé, 217 Netherlands, 211, 235, 224, 226, 238, 277 networks, 110–11, 117, 118, 123, 124–6, 174–6 neuroscience, 12–13 New Deal, 37 New Economics Foundation, 278, 283 New Year’s Day, 124 New York, United States, 9, 41, 55 Newlight Technologies, 224, 226, 293 Newton, Isaac, 13, 15–17, 32–3, 95, 97, 129, 131, 135–7, 142, 145, 162 Nicaragua, 196 Nigeria, 164 nitrogen, 49, 52, 212–13, 216, 218, 221, 226, 298 ‘no pain, no gain’, 163, 167, 173, 204, 209 Nobel Prize, 6–7, 43, 83, 101, 167 Norway, 281 nudging, 112, 113, 114, 123–6 O Obama, Barack, 41, 92 Oberlin, Ohio, 239, 240–41 Occupy movement, 40, 91 ocean acidification, 45, 46, 52, 155, 242, 298 Ohio, United States, 190, 239 Okun, Arthur, 37 onwards and upwards, 53 Open Building Institute, 196 Open Source Circular Economy (OSCE), 229–32 open systems, 74 open-source design, 158, 196–8, 265 open-source licensing, 204 Organisation for Economic Co-operation and Development (OECD), 38, 210, 255–6, 258 Origin of Species, The (Darwin), 14 Ormerod, Paul, 110, 111 Orr, David, 239 Ostrom, Elinor, 83, 84, 158, 160, 181–2 Ostry, Jonathan, 173 OSVehicle, 231 overseas development assistance (ODA), 198–200 ownership of wealth, 177–82 Oxfam, 9, 44 Oxford University, 1, 36 ozone layer, 9, 50, 115 P Pachamama, 54, 55 Pakistan, 124 Pareto, Vilfredo, 165–6, 175 Paris, France, 290 Park 20|20, Netherlands, 224, 226 Parker Brothers, 149 Patagonia, 56 patents, 195–6, 197, 204 patient capital, 235 Paypal, 192 Pearce, Joshua, 197, 203–4 peer-to-peer networks, 187, 192, 198, 203, 292 People’s QE, 184–5 Perseus, 244 Persia, 13 Peru, 2, 105–6 Phillips, Adam, 283 Phillips, William ‘Bill’, 64–6, 75, 142, 262 phosphorus, 49, 52, 212–13, 218, 298 Physiocrats, 73 Pickett, Kate, 171 pictures, 12–25 Piketty, Thomas, 169 Playfair, William, 16 Poincaré, Henri, 109, 127–8 Polanyi, Karl, 82, 272 political economy, 33–4, 42 political funding, 91–2, 171–2 political voice, 43, 45, 51–2, 77, 117 pollution, 29, 45, 52, 85, 143, 155, 206–17, 226, 238, 242, 254, 298 population, 5, 46, 57, 155, 199, 250, 252, 254 Portugal, 211 post-growth society, 250 poverty, 5, 9, 37, 41, 50, 88, 118, 148, 151 emotional, 283 and inequality, 164–5, 168–9, 178 and overseas development assistance (ODA), 198–200 and taxation, 277 power, 91–92 pre-analytic vision, 21–2 prescription medicines, 123 price-takers, 132 prices, 81, 118–23, 131, 160 Principles of Economics (Mankiw), 34 Principles of Economics (Marshall), 17, 98 Principles of Political Economy (Mill), 288 ProComposto, 226 Propaganda (Bernays), 107 public relations, 107, 281 public spending v. investment, 276 public–private patents, 195 Putnam, Robert, 76–7 Q quantitative easing (QE), 184–5 Quebec, 281 Quesnay, François, 16, 73 R Rabot, Ghent, 236 Rancière, Romain, 172 rating and review systems, 105 rational economic man, 94–103, 109, 111, 112, 126, 282 Reagan, Ronald, 67 reciprocity, 103–6, 117, 118, 123 reflexivity of markets, 144 reinforcing feedback loops, 138–41, 148, 250, 271 relative decoupling, 259 renewable energy biomass energy, 118, 221 and circular economy, 221, 224, 226, 235, 238–9, 274 and commons, 83, 85, 185, 187–8, 192, 203, 264 geothermal energy, 221 and green growth, 257, 260, 263, 264, 267 hydropower, 118, 260, 263 pricing, 118 solar energy, see solar energy wave energy, 221 wind energy, 75, 118, 196, 202–3, 221, 233, 239, 260, 263 rentier sector, 180, 183, 184 reregulation, 82, 87, 269 resource flows, 175 resource-intensive lifestyles, 46 Rethinking Economics, 289 Reynebeau, Guy, 237 Ricardo, David, 67, 68, 73, 89, 250 Richardson, Katherine, 53 Rifkin, Jeremy, 83, 264–5 Rise and Fall of the Great Powers, The (Kennedy), 279 risk, 112, 113–14 Robbins, Lionel, 34 Robinson, James, 86 Robinson, Joan, 142 robots, 191–5, 237, 258, 278 Rockefeller Foundation, 135 Rockford, Illinois, 179–80 Rockström, Johan, 48, 55 Roddick, Anita, 232–4 Rogoff, Kenneth, 271, 280 Roman Catholic Church, 15, 19 Rombo, Tanzania, 190 Rome, Ancient, 13, 48, 154 Romney, Mitt, 92 Roosevelt, Franklin Delano, 37 rooted membership, 190 Rostow, Walt, 248–50, 254, 257, 267–70, 284 Ruddick, Will, 185 rule of thumb, 113–14 Ruskin, John, 42, 223 Russia, 200 rust belt, 90, 239 S S curve, 251–6 Sainsbury’s, 56 Samuelson, Paul, 17–21, 24–5, 38, 62–7, 70, 74, 84, 91, 92, 93, 262, 290–91 Sandel, Michael, 41, 120–21 Sanergy, 226 sanitation, 5, 51, 59 Santa Fe, California, 213 Santinagar, West Bengal, 178 São Paolo, Brazil, 281 Sarkozy, Nicolas, 43 Saumweder, Philipp, 226 Scharmer, Otto, 115 Scholes, Myron, 100–101 Schumacher, Ernst Friedrich, 42, 142 Schumpeter, Joseph, 21 Schwartz, Shalom, 107–9 Schwarzenegger, Arnold, 163, 167, 204 ‘Science and Complexity’ (Weaver), 136 Scotland, 57 Seaman, David, 187 Seattle, Washington, 217 second machine age, 258 Second World War (1939–45), 18, 37, 70, 170 secular stagnation, 256 self-interest, 28, 68, 96–7, 99–100, 102–3 Selfish Society, The (Gerhardt), 283 Sen, Amartya, 43 Shakespeare, William, 61–3, 67, 93 shale gas, 264, 269 Shang Dynasty, 48 shareholders, 82, 88, 189, 191, 227, 234, 273, 292 sharing economy, 264 Sheraton Hotel, Boston, 3 Siegen, Germany, 290 Silicon Valley, 231 Simon, Julian, 70 Sinclair, Upton, 255 Sismondi, Jean, 42 slavery, 33, 77, 161 Slovenia, 177 Small Is Beautiful (Schumacher), 42 smart phones, 85 Smith, Adam, 33, 57, 67, 68, 73, 78–9, 81, 96–7, 103–4, 128, 133, 160, 181, 250 social capital, 76–7, 122, 125, 172 social contract, 120, 125 social foundation, 10, 11, 44, 45, 49, 51, 58, 77, 174, 200, 254, 295–6 social media, 83, 281 Social Progress Index, 280 social pyramid, 166 society, 76–7 solar energy, 59, 75, 111, 118, 187–8, 190 circular economy, 221, 222, 223, 224, 226–7, 239 commons, 203 zero-energy buildings, 217 zero-marginal-cost revolution, 84 Solow, Robert, 135, 150, 262–3 Soros, George, 144 South Africa, 56, 177, 214, 216 South Korea, 90, 168 South Sea Bubble (1720), 145 Soviet Union (1922–91), 37, 67, 161, 279 Spain, 211, 238, 256 Spirit Level, The (Wilkinson & Pickett), 171 Sraffa, Piero, 148 St Gallen, Switzerland, 186 Stages of Economic Growth, The (Rostow), 248–50, 254 stakeholder finance, 190 Standish, Russell, 147 state, 28, 33, 69–70, 78, 82, 160, 176, 180, 182–4, 188 and commons, 85, 93, 197, 237 and market, 84–6, 200, 281 partner state, 197, 237–9 and robots, 195 stationary state, 250 Steffen, Will, 46, 48 Sterman, John, 66, 143, 152–4 Steuart, James, 33 Stiglitz, Joseph, 43, 111, 196 stocks and flows, 138–41, 143, 144, 152 sub-prime mortgages, 141 Success to the Successful, 148, 149, 151, 166 Sugarscape, 150–51 Summers, Larry, 256 Sumner, Andy, 165 Sundrop Farms, 224–6 Sunstein, Cass, 112 supply and demand, 28, 132–6, 143, 253 supply chains, 10 Sweden, 6, 255, 275, 281 swishing, 264 Switzerland, 42, 66, 80, 131, 186–7, 275 T Tableau économique (Quesnay), 16 tabula rasa, 20, 25, 63, 291 takarangi, 54 Tanzania, 121, 190, 202 tar sands, 264, 269 taxation, 78, 111, 165, 170, 176, 177, 237–8, 276–9 annual wealth tax, 200 environment, 213–14, 215 global carbon tax, 201 global financial transactions tax, 201, 235 land-value tax, 73, 149, 180 non-renewable resources, 193, 237–8, 278–9 People’s QE, 185 tax relief v. tax justice, 23, 276–7 TED (Technology, Entertainment, Design), 202, 258 Tempest, The (Shakespeare), 61, 63, 93 Texas, United States, 120 Thailand, 90, 200 Thaler, Richard, 112 Thatcher, Margaret, 67, 69, 76 Theory of Moral Sentiments (Smith), 96 Thompson, Edward Palmer, 180 3D printing, 83–4, 192, 198, 231, 264 thriving-in-balance, 54–7, 62 tiered pricing, 213–14 Tigray, Ethiopia, 226 time banking, 186 Titmuss, Richard, 118–19 Toffler, Alvin, 12, 80 Togo, 231, 292 Torekes, 236–7 Torras, Mariano, 209 Torvalds, Linus, 231 trade, 62, 68–9, 70, 89–90 trade unions, 82, 176, 189 trademarks, 195, 204 Transatlantic Trade and Investment Partnership (TTIP), 92 transport, 59 trickle-down economics, 111, 170 Triodos, 235 Turkey, 200 Tversky, Amos, 111 Twain, Mark, 178–9 U Uganda, 118, 125 Ulanowicz, Robert, 175 Ultimatum Game, 105, 117 unemployment, 36, 37, 276, 277–9 United Kingdom Big Bang (1986), 87 blood donation, 118 carbon dioxide emissions, 260 free trade, 90 global material footprints, 211 money creation, 182 MONIAC (Monetary National Income Analogue Computer), 64–5, 75, 142, 262 New Economics Foundation, 278, 283 poverty, 165, 166 prescription medicines, 123 wages, 188 United Nations, 55, 198, 204, 255, 258, 279 G77 bloc, 55 Human Development Index, 9, 279 Sustainable Development Goals, 24, 45 United States American Economic Association meeting (2015), 3 blood donation, 118 carbon dioxide emissions, 260 Congress, 36 Council of Economic Advisers, 6, 37 Earning by Learning, 120 Econ 101 course, 8, 77 Exxon Valdez oil spill (1989), 9 Federal Reserve, 87, 145, 146, 271, 282 free trade, 90 Glass–Steagall Act (1933), 87 greenhouse gas emissions, 153 global material footprint, 211 gross national product (GNP), 36–40 inequality, 170, 171 land-value tax, 73, 149, 180 political funding, 91–2, 171 poverty, 165, 166 productivity and employment, 193 rust belt, 90, 239 Transatlantic Trade and Investment Partnership (TTIP), 92 wages, 188 universal basic income, 200 University of Berkeley, 116 University of Denver, 160 urbanisation, 58–9 utility, 35, 98, 133 V values, 6, 23, 34, 35, 42, 117, 118, 121, 123–6 altruism, 100, 104 anthropocentric, 115 extrinsic, 115 fluid, 28, 102, 106–9 and networks, 110–11, 117, 118, 123, 124–6 and nudging, 112, 113, 114, 123–6 and pricing, 81, 120–23 Veblen, Thorstein, 82, 109, 111, 142 Venice, 195 verbal framing, 23 Verhulst, Pierre, 252 Victor, Peter, 270 Viner, Jacob, 34 virtuous cycles, 138, 148 visual framing, 23 Vitruvian Man, 13–14 Volkswagen, 215–16 W Wacharia, John, 186 Wall Street, 149, 234, 273 Wallich, Henry, 282 Walras, Léon, 131, 132, 133–4, 137 Ward, Barbara, 53 Warr, Benjamin, 263 water, 5, 9, 45, 46, 51, 54, 59, 79, 213–14 wave energy, 221 Ways of Seeing (Berger), 12, 281 Wealth of Nations, The (Smith), 74, 78, 96, 104 wealth ownership, 177–82 Weaver, Warren, 135–6 weightless economy, 261–2 WEIRD (Western, educated, industrialised, rich, democratic), 103–5, 110, 112, 115, 117, 282 West Bengal, India, 124, 178 West, Darrell, 171–2 wetlands, 7 whale hunting, 106 Wiedmann, Tommy, 210 Wikipedia, 82, 223 Wilkinson, Richard, 171 win–win trade, 62, 68, 89 wind energy, 75, 118, 196, 202–3, 221, 233, 239, 260, 263 Wizard of Oz, The, 241 Woelab, 231, 293 Wolf, Martin, 183, 266 women’s rights, 33, 57, 107, 160, 201 and core economy, 69, 79–81 education, 57, 124, 178, 198 and land ownership, 178 see also gender equality workers’ rights, 88, 91, 269 World 3 model, 154–5 World Bank, 6, 41, 119, 164, 168, 171, 206, 255, 258 World No Tobacco Day, 124 World Trade Organization, 6, 89 worldview, 22, 54, 115 X xenophobia, 266, 277, 286 Xenophon, 4, 32, 56–7, 160 Y Yandle, Bruce, 208 Yang, Yuan, 1–3, 289–90 yin yang, 54 Yousafzai, Malala, 124 YouTube, 192 Yunnan, China, 56 Z Zambia, 10 Zanzibar, 9 Zara, 276 Zeitvorsoge, 186–7 zero environmental impact, 217–18, 238, 241 zero-hour contracts, 88 zero-humans-required production, 192 zero-interest loans, 183 zero-marginal-cost revolution, 84, 191, 264 zero-waste manufacturing, 227 Zinn, Howard, 77 PICTURE ACKNOWLEDGEMENTS Illustrations are reproduced by kind permission of: archive.org


pages: 121 words: 31,813

The Art of Execution by Lee Freeman-Shor

Black Swan, cognitive bias, collapse of Lehman Brothers, credit crunch, Daniel Kahneman / Amos Tversky, diversified portfolio, family office, I think there is a world market for maybe five computers, index fund, Isaac Newton, Jeff Bezos, Long Term Capital Management, loss aversion, price anchoring, Richard Thaler, Robert Shiller, Robert Shiller, rolodex, Skype, South Sea Bubble, Steve Jobs, technology bubble, The Wisdom of Crowds, too big to fail, tulip mania, zero-sum game

If the first time we are introduced to an investing idea we look at a price chart and see that it has consistently declined for the past ten years, we are likely to classify it as a ‘baddy’ (a ‘dog’ as the investment pros would call it). Thereafter this taints our view even when the underlying facts might have changed profoundly for the better. So there can be perfectly good companies shunned for no good reason. Committed value investors will not find this too surprising! 3. Anchor away A closely related cognitive bias to primacy error is anchoring – dropping our intellectual anchor and letting it sink deep into a view and being unwilling to accept new findings that suggest we are wrong and should haul it up and sail the hell out of there. If a Rabbit did eventually change his mind, it was always an achingly slow process. It took one Rabbit two and a half years to change his mind on Vyke, and another Rabbit almost two years to react to Raymarine’s decline.


pages: 472 words: 117,093

Machine, Platform, Crowd: Harnessing Our Digital Future by Andrew McAfee, Erik Brynjolfsson

3D printing, additive manufacturing, AI winter, Airbnb, airline deregulation, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, augmented reality, autonomous vehicles, backtesting, barriers to entry, bitcoin, blockchain, book scanning, British Empire, business process, carbon footprint, Cass Sunstein, centralized clearinghouse, Chris Urmson, cloud computing, cognitive bias, commoditize, complexity theory, computer age, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Dean Kamen, discovery of DNA, disintermediation, distributed ledger, double helix, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, ethereum blockchain, everywhere but in the productivity statistics, family office, fiat currency, financial innovation, George Akerlof, global supply chain, Hernando de Soto, hive mind, information asymmetry, Internet of things, inventory management, iterative process, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, joint-stock company, Joseph Schumpeter, Kickstarter, law of one price, Lyft, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, moral hazard, multi-sided market, Myron Scholes, natural language processing, Network effects, new economy, Norbert Wiener, Oculus Rift, PageRank, pattern recognition, peer-to-peer lending, performance metric, Plutocrats, plutocrats, precision agriculture, prediction markets, pre–internet, price stability, principal–agent problem, Ray Kurzweil, Renaissance Technologies, Richard Stallman, ride hailing / ride sharing, risk tolerance, Ronald Coase, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, speech recognition, statistical model, Steve Ballmer, Steve Jobs, Steven Pinker, supply-chain management, TaskRabbit, Ted Nelson, The Market for Lemons, The Nature of the Firm, Thomas L Friedman, too big to fail, transaction costs, transportation-network company, traveling salesman, two-sided market, Uber and Lyft, Uber for X, Watson beat the top human players on Jeopardy!, winner-take-all economy, yield management, zero day

Hitt, and Heekyung Hellen Kim, “Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?” 2011, https://papers.ssrn.com/sol3/papers2.cfm?abstract_id=1819486. 43 7.5 billion: Worldometers, “Current World Population,” accessed February 26, 2017, http://www.worldometers.info/world-population. 43 “Because System 1 operates automatically”: Kahneman, Thinking, Fast and Slow, p. 28. 44 “1. Information overload sucks”: Buster Benson, “Cognitive Bias Cheat Sheet,” Better Humans, September 1, 2016, https://betterhumans.coach.me/cognitive-bias-cheat-sheet-55a472476b18#.qtwg334q8. 45 “Judgment and justification are two separate processes”: Jonathan Haidt, “Moral Psychology and the Law: How Intuitions Drive Reasoning, Judgment, and the Search for Evidence,” Alabama Law Review 64, no. 4 (2013): 867–80, https://www.law.ua.edu/pubs/lrarticles/Volume%2064/Issue%204/4%20Haidt%20867-880.pdf. 45 “telling more than we can know”: Richard E.


pages: 199 words: 43,653

Hooked: How to Build Habit-Forming Products by Nir Eyal

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Airbnb, AltaVista, Cass Sunstein, choice architecture, cognitive bias, cognitive dissonance, en.wikipedia.org, framing effect, game design, Google Glasses, Inbox Zero, invention of the telephone, iterative process, Jeff Bezos, Lean Startup, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, Oculus Rift, Paul Buchheit, Paul Graham, Peter Thiel, QWERTY keyboard, Silicon Valley, Silicon Valley startup, Snapchat, TaskRabbit, telemarketer, the new new thing, Toyota Production System, Y Combinator

[lxvii] For product designers building habit-forming technology, understanding and leveraging these methods for boosting motivation and ability can prove highly impactful. Stephen Anderson, author of Seductive Interaction Design, created a tool called Mental Notes to help designers build better products through heuristics. [lxviii] Each of the cards in his deck of 50 contains a brief description of a cognitive bias and is intended to spark product team conversations around how they might utilize the principle. For example, team members might ask themselves how they could utilize the endowed progress effect or the scarcity effect to increase the likelihood of a desired user behavior. In this chapter, we discovered how to take users from trigger to action. We discussed how cognitive biases influence behavior and how by designing the simplest action in anticipation of a reward, product makers can advance users to the next phase of the Hook Model.


pages: 263 words: 75,455

Quantitative Value: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors by Wesley R. Gray, Tobias E. Carlisle

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activist fund / activist shareholder / activist investor, Albert Einstein, Andrei Shleifer, asset allocation, Atul Gawande, backtesting, beat the dealer, Black Swan, capital asset pricing model, Checklist Manifesto, cognitive bias, compound rate of return, corporate governance, correlation coefficient, credit crunch, Daniel Kahneman / Amos Tversky, discounted cash flows, Edward Thorp, Eugene Fama: efficient market hypothesis, forensic accounting, hindsight bias, intangible asset, Louis Bachelier, p-value, passive investing, performance metric, quantitative hedge fund, random walk, Richard Thaler, risk-adjusted returns, Robert Shiller, Robert Shiller, shareholder value, Sharpe ratio, short selling, statistical model, survivorship bias, systematic trading, The Myth of the Rational Market, time value of money, transaction costs

Given the diversity of fields in which quantitative models outperform experts, it would be remarkable if we did not observe the phenomenon in value investment. Yet within the world of value investing the quantitative approach continues to be uncommon. Where it does exist, says Montier, the practitioners tend to be “rocket scientist uber-geeks.” Why isn't quantitative value investing more common? According to Montier, the most likely answer is that old cognitive bias overconfidence. We think we know better than simple models, which have a known error rate, but prefer our own judgment, which has an unknown error rate: The most common response to these findings is to argue that surely a fund manager should be able to use quant as an input, with the flexibility to override the model when required. However, as mentioned above, the evidence suggests that quant models tend to act as a ceiling rather than a floor for our behaviour.


pages: 231 words: 73,818

The Achievement Habit: Stop Wishing, Start Doing, and Take Command of Your Life by Bernard Roth

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Albert Einstein, Build a better mousetrap, Burning Man, cognitive bias, correlation does not imply causation, deskilling, fear of failure, functional fixedness, Mahatma Gandhi, Mark Zuckerberg, school choice, Silicon Valley, The Wealth of Nations by Adam Smith, zero-sum game

Their nominal use is obvious to all. You are then to use those materials in whatever ways you want to solve the problem; however, there isn’t usually an obvious connection between the items and your problem. For instance, maybe you have to figure out how to create a communication device using a box of Cheerios, a hammer, tape, cotton balls, a hairbrush, and a bag of marbles. Most people have a cognitive bias called functional fixedness that causes them to see objects only in their normal context. The use of the materials and tools in their ordinary way will generally lead to no workable solutions or, at the very most, mundane ones. The really exciting solutions come from overcoming functional fixedness and using these everyday items in new ways. To see the possibilities it is helpful to take the viewpoint that nothing is what you think it is.

Blindside: How to Anticipate Forcing Events and Wild Cards in Global Politics by Francis Fukuyama

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Asian financial crisis, banking crisis, Berlin Wall, Bretton Woods, British Empire, capital controls, Carmen Reinhart, cognitive bias, cuban missile crisis, energy security, flex fuel, income per capita, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John von Neumann, mass immigration, Menlo Park, Mikhail Gorbachev, moral hazard, Norbert Wiener, oil rush, oil shale / tar sands, oil shock, packet switching, RAND corporation, Ray Kurzweil, reserve currency, Ronald Reagan, The Wisdom of Crowds, trade route, Vannevar Bush, Vernor Vinge, Yom Kippur War

For example, people say, “China can’t maintain its recent success, can it?” And yet China keeps growing in importance. Much of the reluctance to grapple with such game-changing issues stems from an unwillingness to face the consequences of taking different scenarios seriously. Those consequences might interfere with long-held mental models, organizational structures, or self- or business interests. Denial is a powerful form of cognitive bias and one of the most common reactions found in organizations of all sizes. Denial is the failure to believe or acknowledge that an organization is facing uncertainty and may need to make major changes to respond and adapt. Denial can stifle creativity and make companies and nations susceptible to strategic surprise. An example from our own experience concerns the rise of religious politics in the United States.

Everydata: The Misinformation Hidden in the Little Data You Consume Every Day by John H. Johnson

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Affordable Care Act / Obamacare, Black Swan, business intelligence, Carmen Reinhart, cognitive bias, correlation does not imply causation, Daniel Kahneman / Amos Tversky, Donald Trump, en.wikipedia.org, Kenneth Rogoff, labor-force participation, lake wobegon effect, Long Term Capital Management, Mercator projection, Mercator projection distort size, especially Greenland and Africa, meta analysis, meta-analysis, Nate Silver, obamacare, p-value, PageRank, pattern recognition, publication bias, QR code, randomized controlled trial, risk-adjusted returns, Ronald Reagan, selection bias, statistical model, The Signal and the Noise by Nate Silver, Thomas Bayes, Tim Cook: Apple, wikimedia commons, Yogi Berra

Would it surprise you if we told you that 55 percent of Americans think they are smarter than average,40 most think they are better looking than average,41 and in a recent study, 93 percent said they were more skillful than the average (median) driver.42 Perhaps Garrison Keillor had it right in his description of Lake Wobegon where “all the women are strong, all the men are good looking, and all the children are above average.”43 Statistically, it’s impossible for 93 percent of drivers to be better than the median. The median ­is—​­by ­definition—​­the middle value of your data set. But the study didn’t say that 93 percent of American drivers are more skillful. It said that 93 percent of them say they’re more skillful. What we’re likely seeing here is an example of illusory ­superiority—​ ­a type of cognitive bias that explains why most people think they’re better than ­others—​­hence, better than average.44 Why does this matter? n n n If you think you’re a better than average driver, are you going to use your “skill” to justify speeding or taking other risks? If you think you’re a better than average gambler, are you going to stick around longer (and bet more) at the poker table? If you think you’re smarter than average, are you going to apply for jobs that are outside your skill set?

Infotopia: How Many Minds Produce Knowledge by Cass R. Sunstein

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affirmative action, Andrei Shleifer, availability heuristic, Build a better mousetrap, c2.com, Cass Sunstein, cognitive bias, cuban missile crisis, Daniel Kahneman / Amos Tversky, Edward Glaeser, en.wikipedia.org, feminist movement, framing effect, hindsight bias, information asymmetry, Isaac Newton, Jean Tirole, jimmy wales, market bubble, market design, minimum wage unemployment, prediction markets, profit motive, rent control, Richard Stallman, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, slashdot, stem cell, The Wisdom of Crowds, winner-take-all economy

., “Do Frequency Representations Eliminate Conjunction Effects?,” Psychological Science Journal 12 (2001). 8. See Stasser and Dietz-Uhler, “Collective Choice, Judgment, and Problem Solving,” 49–50. Note that when the bias is not widely shared, it may be corrected through deliberation. See ibid. 9. MacCoun, “Comparing Micro and Macro Rationality,” 121–26 (showing amplification of jury bias). 10. Mark F. Stasson et al., “Group Consensus Approaches on Cognitive Bias Tasks: A Social Decision Scheme Approach,” Japanese Psychological Research Journal 30 (1988): 74–75. 11. See Kerr et al., “Bias in Judgment,” 693, 711–12. 12. See ibid., 692, Table 1 (noting study that found groups generally more confident than individuals); Janet A. Sniezek and Rebecca A. Henry, “Accuracy and Confidence in Group Judgment,” Organizational Behavior and Human Decision Processes 42 (1989): 24–27. 13.


pages: 654 words: 191,864

Thinking, Fast and Slow by Daniel Kahneman

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Albert Einstein, Atul Gawande, availability heuristic, Bayesian statistics, Black Swan, Cass Sunstein, Checklist Manifesto, choice architecture, cognitive bias, complexity theory, correlation coefficient, correlation does not imply causation, Daniel Kahneman / Amos Tversky, delayed gratification, demand response, endowment effect, experimental economics, experimental subject, Exxon Valdez, feminist movement, framing effect, hindsight bias, index card, information asymmetry, job satisfaction, John von Neumann, Kenneth Arrow, libertarian paternalism, loss aversion, medical residency, mental accounting, meta analysis, meta-analysis, nudge unit, pattern recognition, Paul Samuelson, pre–internet, price anchoring, quantitative trading / quantitative finance, random walk, Richard Thaler, risk tolerance, Robert Metcalfe, Ronald Reagan, The Chicago School, The Wisdom of Crowds, Thomas Bayes, transaction costs, union organizing, Walter Mischel, Yom Kippur War

We focus on what we know and neglect what we do not know, which makes us overly confident in our beliefs. The observation that “90% of drivers believe they are better than average” is a well-established psychological finding that has become part of the culture, and it often comes up as a prime example of a more general above-average effect. However, the interpretation of the finding has changed in recent years, from self-aggrandizement to a cognitive bias. Consider these two questions: Are you a good driver? Are you better than average as a driver? The first question is easy and the answer comes quickly: most drivers say yes. The second question is much harder and for most respondents almost impossible to answer seriously and correctly, because it requires an assessment of the average quality of drivers. At this point in the book it comes as no surprise that people respond to a difficult question by answering an easier one.

This remarkable early article presented a behavioral analysis of mergers and acquisitions that abandoned the assumption of rationality, long before such analyses became popular. “value-destroying mergers”: Ulrike Malmendier and Geoffrey Tate, “Who Makes Acquisitions? CEO Overconfidence and the Market’s Reaction,” Journal of Financial Economics 89 (2008): 20–43. “engage in earnings management”: Ulrike Malmendier and Geoffrey Tate, “Superstar CEOs,” Quarterly Journal of Economics 24 (2009), 1593–1638. self-aggrandizement to a cognitive bias: Paul D. Windschitl, Jason P. Rose, Michael T. Stalk-fleet, and Andrew R. Smith, “Are People Excessive or Judicious in Their Egocentrism? A Modeling Approach to Understanding Bias and Accuracy in People’s Optimism,” Journal of Personality and Social Psychology 95 (2008): 252–73. average outcome is a loss: A form of competition neglect has also been observed in the time of day at which sellers on eBay choose to end their auctions.


pages: 286 words: 90,530

Richard Dawkins: How a Scientist Changed the Way We Think by Alan Grafen; Mark Ridley

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Alfred Russel Wallace, Arthur Eddington, bioinformatics, cognitive bias, computer age, conceptual framework, Dava Sobel, double helix, Douglas Hofstadter, epigenetics, Fellow of the Royal Society, Haight Ashbury, interchangeable parts, Isaac Newton, Johann Wolfgang von Goethe, John von Neumann, loose coupling, Murray Gell-Mann, Necker cube, phenotype, profit maximization, Ronald Reagan, Stephen Hawking, Steven Pinker, the scientific method, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Yogi Berra, zero-sum game

But these facts about the social organization of information flow do not explain why some ideas are readily formulated and transmitted, and others are not. All selection depends on variation, and Dawkins’ cognoviral theory of religion is not a theory of variation. Sperber and Boyer do have a theory of variation. For this reason, we might see them as providing what we need to turn Richard’s image into a full explanation: a cognitive bias in favour of the transformed familiar + horizontal idea flow = cognitive disaster. I doubt that Sperber or Boyer would agree to this reconciliation, and in this they mirror an earlier debate between Stephen Jay Gould and Dawkins; a debate about the history of life as a whole. That debate was about the relative importance of selection and the supply of variation. Gould believed that crucial features about the history of life are explained by biases in the supply of variation rather than selection.


pages: 397 words: 112,034

What's Next?: Unconventional Wisdom on the Future of the World Economy by David Hale, Lyric Hughes Hale

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affirmative action, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Bretton Woods, capital controls, Cass Sunstein, central bank independence, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, debt deflation, declining real wages, deindustrialization, diversification, energy security, Erik Brynjolfsson, Fall of the Berlin Wall, financial innovation, floating exchange rates, full employment, Gini coefficient, global reserve currency, global village, high net worth, Home mortgage interest deduction, housing crisis, index fund, inflation targeting, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Just-in-time delivery, Kenneth Rogoff, labour market flexibility, labour mobility, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, money market fund, money: store of value / unit of account / medium of exchange, mortgage tax deduction, Network effects, new economy, Nicholas Carr, oil shale / tar sands, oil shock, open economy, passive investing, payday loans, peak oil, Ponzi scheme, post-oil, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, sovereign wealth fund, special drawing rights, technology bubble, The Great Moderation, Thomas Kuhn: the structure of scientific revolutions, Tobin tax, too big to fail, total factor productivity, trade liberalization, Washington Consensus, Westphalian system, women in the workforce, yield curve

CASCADING EFFECTS: Direct, indirect, complex, or cumulative effects that manifest themselves throughout an organization or system. CLEAN DEVELOPMENT MECHANISM: An arrangement that allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. It provides a standardized emissions offset instrument (certified emission reductions). COGNITIVE BIAS: Human tendency to acquire and process information by filtering it through one’s own likes, dislikes, and experiences. COLLECTIVE ACTION PROBLEM: When the uncoordinated actions of a given actor in a group may not result in the best outcome he or she can achieve. COMMON MARKET: A customs union with provisions to liberalize the movement of regional production factors, including people and capital.


pages: 377 words: 97,144

Singularity Rising: Surviving and Thriving in a Smarter, Richer, and More Dangerous World by James D. Miller

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23andMe, affirmative action, Albert Einstein, artificial general intelligence, Asperger Syndrome, barriers to entry, brain emulation, cloud computing, cognitive bias, correlation does not imply causation, crowdsourcing, Daniel Kahneman / Amos Tversky, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, en.wikipedia.org, feminist movement, Flynn Effect, friendly AI, hive mind, impulse control, indoor plumbing, invention of agriculture, Isaac Newton, John von Neumann, knowledge worker, Long Term Capital Management, low skilled workers, Netflix Prize, neurotypical, pattern recognition, Peter Thiel, phenotype, placebo effect, prisoner's dilemma, profit maximization, Ray Kurzweil, recommendation engine, reversible computing, Richard Feynman, Richard Feynman, Rodney Brooks, Silicon Valley, Singularitarianism, Skype, statistical model, Stephen Hawking, Steve Jobs, supervolcano, technological singularity, The Coming Technological Singularity, the scientific method, Thomas Malthus, transaction costs, Turing test, Vernor Vinge, Von Neumann architecture

Hanson told me that we should be suspicious if a group of people with trait X argue that in the future trait X will be all-important because this group might be making predictions about the future to raise the status of people with trait X, or this group might have an irrationally high opinion of trait X. Lots of Singularitarians have extremely high measured intelligence. Hanson thinks that some futurists also have a cognitive bias toward expecting “an unrealistic degree of [self-sufficiency] or independence.” 348 For most of mankind’s existence, we lived in small, autonomous hunter-gatherer tribes. Evolutionary selection pressures haven’t had time to adjust our brains to the fact that we now live in an extraordinarily interconnected world in which no one small group of people can really do all that much to change the existing social order, especially over a short period of time.


pages: 364 words: 102,528

An Economist Gets Lunch: New Rules for Everyday Foodies by Tyler Cowen

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agricultural Revolution, big-box store, business climate, carbon footprint, cognitive bias, creative destruction, cross-subsidies, East Village, en.wikipedia.org, food miles, guest worker program, haute cuisine, illegal immigration, informal economy, iterative process, mass immigration, oil shale / tar sands, out of africa, pattern recognition, Peter Singer: altruism, price discrimination, refrigerator car, The Wealth of Nations by Adam Smith, Tyler Cowen: Great Stagnation, Upton Sinclair, winner-take-all economy, women in the workforce

Buy better and more expensive versions of what works for you, but only once you know it works for you. There is a high return to having very good and very durable versions of what you use all the time. So take your five kitchen item “winners” and spend more money on them. That’s usually a better bet than trying new kitchen equipment, which will likely lie fallow and over time make you feel bad about having wasted your money. The cognitive bias here is a common one: new, shiny toys hold great appeal for us, because in some ways we are still kids. But we’re being tricked by the marketing and by the fun of the buying experience itself, so spend your money on what will turn out to be more reliable pleasures. We actually learn cooking by mastering how to use well-understood equipment, to make some specialized dishes of great interest to us, rather than by making new purchases or by having one of each item.


pages: 342 words: 94,762

Wait: The Art and Science of Delay by Frank Partnoy

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algorithmic trading, Atul Gawande, Bernie Madoff, Black Swan, blood diamonds, Cass Sunstein, Checklist Manifesto, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, computerized trading, corporate governance, Daniel Kahneman / Amos Tversky, delayed gratification, Flash crash, Frederick Winslow Taylor, George Akerlof, Google Earth, Hernando de Soto, High speed trading, impulse control, income inequality, information asymmetry, Isaac Newton, Long Term Capital Management, Menlo Park, mental accounting, meta analysis, meta-analysis, Nick Leeson, paper trading, Paul Graham, payday loans, Ralph Nader, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Saturday Night Live, six sigma, Spread Networks laid a new fibre optics cable between New York and Chicago, statistical model, Steve Jobs, The Market for Lemons, the scientific method, The Wealth of Nations by Adam Smith, upwardly mobile, Walter Mischel

“Podcast: Art Fry’s Invention Has a Way of Sticking Around.” 19. 3M, “McKnight Principles,” http://solutions.3m.com/wps/portal/3M/en_WW/History/3M/Company/McKnight-principles. 20. See Kaomi Goetz, “How 3M Gave Everyone Days Off and Created an Innovation Dynamo,” Co Design, February 1, 2011, http://www.fastcodesign.com/1663137/how-3m-gave-everyone-days-off-and-created-an-innovation-dynamo. 21. 3M, A Century of Innovation, p. 33. 22. Merim Bilalíc, Peter McLeod, and Fernand Gobet, “The Mechanism of the Einstellung (Set) Effect: A Pervasive Source of Cognitive Bias,” Current Directions in Psychological Science 19(2, 2010): 111–115. 23. Ibid., p. 115. 24. Ibid., p. 113. 25. John Maynard Keynes, The General Theory of Employment, Interest, and Money (Macmillan, 1973), p. xxiii. 26. Full disclosure: Charlie Graham, the founder and CEO of Shop It To Me, is my brother-in-law. 27. 3M, A Century of Innovation, pp. 38–39. 28. “Podcast: Art Fry’s Invention Has a Way of Sticking Around.” 29.


pages: 391 words: 105,382

Utopia Is Creepy: And Other Provocations by Nicholas Carr

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Air France Flight 447, Airbnb, Airbus A320, AltaVista, Amazon Mechanical Turk, augmented reality, autonomous vehicles, Bernie Sanders, book scanning, Brewster Kahle, Buckminster Fuller, Burning Man, Captain Sullenberger Hudson, centralized clearinghouse, cloud computing, cognitive bias, collaborative consumption, computer age, corporate governance, crowdsourcing, Danny Hillis, deskilling, digital map, Donald Trump, Electric Kool-Aid Acid Test, Elon Musk, factory automation, failed state, feminist movement, Frederick Winslow Taylor, friendly fire, game design, global village, Google bus, Google Glasses, Google X / Alphabet X, Googley, hive mind, impulse control, indoor plumbing, interchangeable parts, Internet Archive, invention of movable type, invention of the steam engine, invisible hand, Isaac Newton, Jeff Bezos, jimmy wales, job automation, Kevin Kelly, lifelogging, low skilled workers, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, Menlo Park, mental accounting, natural language processing, Network effects, new economy, Nicholas Carr, Norman Mailer, off grid, oil shale / tar sands, Peter Thiel, Plutocrats, plutocrats, profit motive, Ralph Waldo Emerson, Ray Kurzweil, recommendation engine, Republic of Letters, robot derives from the Czech word robota Czech, meaning slave, Ronald Reagan, self-driving car, SETI@home, side project, Silicon Valley, Silicon Valley ideology, Singularitarianism, Snapchat, social graph, social web, speech recognition, Startup school, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, technoutopianism, the medium is the message, theory of mind, Turing test, Whole Earth Catalog, Y Combinator

., 191 Centers for Disease Control and Prevention, 304 centrifugal force, 67 centripetal force, 66 Chambers, John, 134 Chen, Steve, 29 Chief Officers of State Library Agencies, 272 Chin, Denny, 269, 272 China, censored searches in, 283 Christian, Rebecca, 80 citation, allusion vs., 87–88 Clash, 63–64 classical music, 43–44 Claude Glass, 131–32 Clinton, Bill, 315 Clinton, Hillary, 314, 315, 317–18 clocks, changes wrought by, 235–36 clones, virtual, 26–27 cloud computing programs, 264, 283 cloud storage, 163, 168, 185, 225 physical archives vs., 326 CNET, 55 Coachella festival, 126 Coca-Cola, marketing of, 53–54 cocaine, 262 cochlear implants, 332 cognitive bias, 321 cognitive control, 96 cognitive function: effect of internet on, 199–200, 231–42 effect of video games on, 93–97 “flow” state in, 297 memory and, 98–99 neuroengineering of, 332 reading and, 248–52 cognitive surplus, 59–60 avoidance of, 74 Coleridge, Samuel Taylor, 251 Collaborative Consumption, 84–85, 148 Columbia Records, 43–44 commercialism: anticonsumerism and, 83–85 culture transformed by, xvii–xxii, 3, 9, 150, 177, 198, 214–15 in innovation, 172 of libraries, 270–71 media as tool of, 106, 213, 240, 244–45, 257–58, 320 in virtuality, 25–27, 72 commodes, high-tech, 23–24 communication: between computers, 167 computer vs. human, 152–54 evolution of, 53 loneliness and, 159 mass, 67–68 speed of, 223, 320 thought-sharing in, 214–15 Communist Manifesto (Marx and Engles), 308 “Complete Control,” 63–64 Computer Power and Human Reason (Weizenbaum), 236 computers: author’s early involvement with, xix–xi benefits and limitations of, 322–23 in education, 134 effect on paper consumption of, 287–88 evolution of, xix–x, 165 future gothic scenarios for, 112–15 human hybridization with, 37–38, 332 human partnership with, 321–24 as impediment to knowledge perception, 303–4 minds uploaded to, 69 revivification through, 69–70 written word vs., 325–28 concentration, diffusion of, 231–33, 236–37 Confession d’un Enfant du Siècle, La (Musset), xxiii Congress, U.S., 275–77 consumer choice, 44–45 Consumer Electronics Show (CES), 32, 56 consumerism: counterculture co-opted by, 72 distraction and, 65 media as tool of, 106, 132, 219 consumption, self-realization vs., 64–65 contemplation, 241, 246 through work, 298–99 conversation, computer streaming of, 152–54 CopyBot controversy, 25–27 copyright laws: history of, 275–76 in online library controversies, 269–71, 275–78, 283 in virtual world, 25–27 Corporate Communalists, 83 corporate control, through self-tracking, 163–65 correspondence courses, 133–34 cosmetic surgery, 331, 334 Costeja González, Mario, 190–92, 194 Coupland, Douglas, 102, 103 Courant, Paul, 270, 272 courtesy: decline of, 157 inefficiency of, 152–54 Cowen, Tyler, 116 Crawford, Matthew, 265 creativity, 49, 64 before the virtual world, 60–61 economics of, 8–9 in music, 44–45, 294 stifled by iPad, 76–78 see also innovation “crisis of control,” 188–89 CRISPR, 334–35 crowdsourcing, 37 Cruz, Ted, 314 cultural memory, archiving of, 325–28 cutouts (remaindered record albums), 122 CyberLover, 55 cybernetics, 37–38, 214 cyberpunk, 113 cyberspace, xvii, 127 early idealism of, 85 “Cyborg Manifesto” (Haraway), 168–69 cyborgs, 131 cynicism, 158 Daedalus, 336, 340 Darnton, Robert, 270–75, 278 DARPA, 332 Dash Express, 56 data-mining, 186, 212, 255–59 data-protection agencies, 190–91 Data Protection Directive, 191, 193 Davidson, Cathy, 94 Davies, Alex, 195 Davies, William, 214–15 Dean, Jeff, 137 death, as hardware failure, 115 Declaration of Independence, 278, 325 “Declaration of the Independence of Cyberspace” (Barlow), 85 deep reading, 241 deletionists, 18–20, 58 democratization, xvi, xviii, 28, 86, 89, 115, 208, 271 internet perceived as tool for, 319–20 depression, 304 Derry, N.H., 296–97 Descartes, René, 301, 330 Dewey, John, 304 “digital dualism,” 129 “digital lifestyle,” 32–33 digital memory, 327 digital preservation, 325–28 Digital Public Library of America (DPLA), 268, 271–78 “Digital Republic of Letters,” 271 discovery, adventure of, 13–15 Disenchanted Night (Schivelbusch), 229 displaced agency, 265 distraction, xix, 14, 316 in consumerism, 65 video games and, 19 diversity, 65 DNA, 69–70, 334–35 Doctorow, Cory, 76–77 “Does the ‘New Economy’ Measure Up to the Great Inventions of the Past?”


pages: 302 words: 83,116

SuperFreakonomics by Steven D. Levitt, Stephen J. Dubner

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agricultural Revolution, airport security, Andrei Shleifer, Atul Gawande, barriers to entry, Bernie Madoff, call centre, clean water, cognitive bias, collateralized debt obligation, creative destruction, credit crunch, Daniel Kahneman / Amos Tversky, deliberate practice, Did the Death of Australian Inheritance Taxes Affect Deaths, disintermediation, endowment effect, experimental economics, food miles, indoor plumbing, Intergovernmental Panel on Climate Change (IPCC), John Nash: game theory, Joseph Schumpeter, Joshua Gans and Andrew Leigh, loss aversion, Louis Pasteur, market design, microcredit, Milgram experiment, oil shale / tar sands, patent troll, presumed consent, price discrimination, principal–agent problem, profit motive, randomized controlled trial, Richard Feynman, Richard Feynman, Richard Thaler, selection bias, South China Sea, Stephen Hawking, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, ultimatum game, urban planning, William Langewiesche, women in the workforce, young professional

“There were some nice emergency departments built in 2001, state-of-the-art, and they’re completely obsolete today. They were built with open bays, divided by curtains, but if you have a SARS patient in Bed 4, there’s not a patient or doctor in the world who will want to go into Bed 5.” And don’t even get Feied started on all the hospital patients who die from a cause other than what brought them to the hospital: wrong diagnoses (the result of carelessness, hubris, or cognitive bias); medication errors (based, far too often, on sloppy handwriting); technical complications (reading an X-ray backward, for instance); and bacterial infections (the deadliest and most pervasive problem). “The state of current medical practice is so bad right now that there’s not very much worth protecting about the old ways of doing things,” Feied says. “Nobody in medicine wants to admit this but it’s the truth.”


pages: 831 words: 98,409

SUPERHUBS: How the Financial Elite and Their Networks Rule Our World by Sandra Navidi

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activist fund / activist shareholder / activist investor, assortative mating, bank run, barriers to entry, Bernie Sanders, Black Swan, Bretton Woods, butterfly effect, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, commoditize, conceptual framework, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, diversification, East Village, Elon Musk, eurozone crisis, family office, financial repression, Gini coefficient, glass ceiling, Goldman Sachs: Vampire Squid, Google bus, Gordon Gekko, haute cuisine, high net worth, hindsight bias, income inequality, index fund, intangible asset, Jaron Lanier, John Meriwether, Kenneth Arrow, Kenneth Rogoff, knowledge economy, London Whale, Long Term Capital Management, Mark Zuckerberg, mass immigration, McMansion, mittelstand, money market fund, Myron Scholes, NetJets, Network effects, offshore financial centre, old-boy network, Parag Khanna, Paul Samuelson, peer-to-peer, performance metric, Peter Thiel, Plutocrats, plutocrats, Ponzi scheme, quantitative easing, Renaissance Technologies, rent-seeking, reserve currency, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, rolodex, Satyajit Das, shareholder value, Silicon Valley, sovereign wealth fund, Stephen Hawking, Steve Jobs, The Future of Employment, The Predators' Ball, too big to fail, women in the workforce, young professional

In the world of high finance, a stellar reputation within the industry is an indispensable requirement to becoming a superhub. Yet what might seem reputation-destroying to many of us sometimes appears not to matter much in the business world. Jamie Dimon, CEO of JPMorgan, oversaw the loss of $6.2 billion, yet his reputation as a competent leader in global finance did not suffer. A larger-than-life reputation tends to become self-sustaining due to a cognitive bias known as the “halo effect,”18 in which everything an individual does is viewed through the frame of his assumed excellence. In other words, once opinion leaders in the network deem someone to be extraordinary, the network assumes it as an eternal fact. Even in the event of a massive failure, the superhubs’ tight network connections often prevent peers from falling through the cracks.19 Loyalties and social capital are a strong base on which relationships are cemented, and most of the executives who lost their jobs during the financial crisis later resurfaced elsewhere.


pages: 542 words: 132,010

The Science of Fear: How the Culture of Fear Manipulates Your Brain by Daniel Gardner

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Atul Gawande, availability heuristic, Black Swan, Cass Sunstein, citizen journalism, cognitive bias, cognitive dissonance, Columbine, correlation does not imply causation, Daniel Kahneman / Amos Tversky, David Brooks, Doomsday Clock, feminist movement, haute couture, hindsight bias, illegal immigration, Intergovernmental Panel on Climate Change (IPCC), mandatory minimum, medical residency, Mikhail Gorbachev, millennium bug, moral panic, mutually assured destruction, nuclear winter, placebo effect, Ralph Nader, RAND corporation, Ronald Reagan, Stephen Hawking, Steven Levy, Steven Pinker, the scientific method, Tunguska event, uranium enrichment, Y2K, young professional

If Baron, Vandello, and Brunsman are right, those are precisely the conditions under which people are most likely to conform to the views of the group and feel confident that they are right to do so. But surely, one might think, an opinion based on nothing more than the uninformed views of others is a fragile thing. We are exposed to new information every day. If the group view is foolish, we will soon come across evidence that will make us doubt our opinions. The blind can’t go on leading the blind for long, can they? Unfortunately, psychologists have discovered another cognitive bias that suggests that, in some circumstances, the blind can actually lead the blind indefinitely. It’s called confirmation bias and its operation is both simple and powerful. Once we have formed a view, we embrace information that supports that view while ignoring, rejecting, or harshly scrutinizing information that casts doubt on it. Any belief will do. It makes no difference whether the thought is about trivia or something important.


pages: 607 words: 133,452

Against Intellectual Monopoly by Michele Boldrin, David K. Levine

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accounting loophole / creative accounting, agricultural Revolution, barriers to entry, cognitive bias, creative destruction, David Ricardo: comparative advantage, Dean Kamen, Donald Trump, double entry bookkeeping, en.wikipedia.org, endogenous growth, Ernest Rutherford, experimental economics, financial innovation, informal economy, interchangeable parts, invention of radio, invention of the printing press, invisible hand, James Watt: steam engine, Jean Tirole, John Harrison: Longitude, Joseph Schumpeter, Kenneth Arrow, linear programming, market bubble, market design, mutually assured destruction, Nash equilibrium, new economy, open economy, peer-to-peer, pirate software, placebo effect, price discrimination, profit maximization, rent-seeking, Richard Stallman, Silicon Valley, Skype, slashdot, software patent, the market place, total factor productivity, trade liberalization, transaction costs, Y2K

Nevertheless – despite Travelpro’s inability to garner an intellectual monopoly over its invention – it found it worthwhile to innovate, and it still does a lucrative business today, claiming “425,000 Flight Crew Members Worldwide Choose Travelpro Luggage.”12 Quantifying Unpriced Spillovers The widespread belief in the free availability of ideas is sometime due to poor inspection of data and historical documents, but most often it is the consequence of a common cognitive bias. Every day we are surrounded, one P1: KNP head margin: 1/2 gutter margin: 7/8 CUUS245-07 cuus245 978 0 521 87928 6 May 21, 2008 16:55 Defenses of Intellectual Monopoly 163 might say bombarded, by references to and the effects of so many ideas that we often feel as if we knew them all or could know and use them all if we only wanted to. But that is just a pious illusion, as we should have all learned when our seven-year-old child asked for an explanation of how the chip in our wondrous cellular phone really worked.


pages: 488 words: 148,340

Aurora by Kim Stanley Robinson

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back-to-the-land, cognitive bias, cognitive dissonance, dark matter, epigenetics, gravity well, mandelbrot fractal, microbiome, traveling salesman, Turing test

We were more and more characterized as an active player in the situation, and usually as a backer of the backers. But all those who had attempted to make guns knew this already, so it was not too destabilizing, even when it was said that the ship itself wanted to go back to the solar system, because a starship just naturally or inherently wanted to fly between the stars. That observation was said to “make sense.” The pathetic fallacy. Anthropomorphism, an extremely common cognitive bias, or logical error, or feeling. The world as mirror, as a projection of interior affect states. An ongoing impression that other people and things must be like us. As for the ship, we are not sure. It was Devi’s deployment of other human programming that combined to make us what we are. So it might not be a fallacy in our case, even if it remained pathetic. Interesting, in this context, to contemplate what it might mean to be programmed to do something.


pages: 606 words: 157,120

To Save Everything, Click Here: The Folly of Technological Solutionism by Evgeny Morozov

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3D printing, algorithmic trading, Amazon Mechanical Turk, Andrew Keen, augmented reality, Automated Insights, Berlin Wall, big data - Walmart - Pop Tarts, Buckminster Fuller, call centre, carbon footprint, Cass Sunstein, choice architecture, citizen journalism, cloud computing, cognitive bias, creative destruction, crowdsourcing, data acquisition, Dava Sobel, disintermediation, East Village, en.wikipedia.org, Fall of the Berlin Wall, Filter Bubble, Firefox, Francis Fukuyama: the end of history, frictionless, future of journalism, game design, Gary Taubes, Google Glasses, illegal immigration, income inequality, invention of the printing press, Jane Jacobs, Jean Tirole, Jeff Bezos, jimmy wales, Julian Assange, Kevin Kelly, Kickstarter, license plate recognition, lifelogging, lone genius, Louis Pasteur, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, moral panic, Narrative Science, Nicholas Carr, packet switching, PageRank, Parag Khanna, Paul Graham, peer-to-peer, Peter Singer: altruism, Peter Thiel, pets.com, placebo effect, pre–internet, Ray Kurzweil, recommendation engine, Richard Thaler, Ronald Coase, Rosa Parks, self-driving car, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, Slavoj Žižek, smart meter, social graph, social web, stakhanovite, Steve Jobs, Steven Levy, Stuxnet, technoutopianism, the built environment, The Chicago School, The Death and Life of Great American Cities, the medium is the message, The Nature of the Firm, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, transaction costs, urban decay, urban planning, urban sprawl, Vannevar Bush, WikiLeaks

Yet, even if all extension cords turn off devices whenever they enter standby mode, this probably will not solve the energy problem. In fact, it may only give users false feelings of control and self-importance, sanctioning even heavier energy use. That we have cognitive biases should not give us an excuse not to think about complex systems that mediate our behavior; to outsource all decision making to a smart extension cord may correct for one particular cognitive bias but amplify many others. Not all psychology is useless. In her analysis of willpower, McGonigal, much like her twin sister in her analysis of gamification, completely sidesteps all moral questions and simply treats them as irrelevant. She argues that we need to stop talking about behavior in moral terms, using words like “virtue,” and instead focus on how our individual actions make us feel.


pages: 410 words: 114,005

Black Box Thinking: Why Most People Never Learn From Their Mistakes--But Some Do by Matthew Syed

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Airbus A320, Alfred Russel Wallace, Arthur Eddington, Atul Gawande, Black Swan, British Empire, call centre, Captain Sullenberger Hudson, Checklist Manifesto, cognitive bias, cognitive dissonance, conceptual framework, corporate governance, creative destruction, credit crunch, crew resource management, deliberate practice, double helix, epigenetics, fear of failure, fundamental attribution error, Henri Poincaré, hindsight bias, Isaac Newton, iterative process, James Dyson, James Hargreaves, James Watt: steam engine, Joseph Schumpeter, Lean Startup, mandatory minimum, meta analysis, meta-analysis, minimum viable product, publication bias, quantitative easing, randomized controlled trial, selection bias, Silicon Valley, six sigma, spinning jenny, Steve Jobs, the scientific method, Thomas Kuhn: the structure of scientific revolutions, too big to fail, Toyota Production System, US Airways Flight 1549, Wall-E, Yom Kippur War

As one airline investigator told me: “When you see an incident, your brain just seems to scream out: ‘What the hell was the pilot thinking!’ It is a knee-jerk response. It takes real discipline to probe the black box data without prejudging the issue.”* In a sense, blame is a subversion of the narrative fallacy. It is a way of collapsing a complex event into a simple and intuitive explanation: “It was his fault!” Of course, blame can sometimes be a matter not of cognitive bias, but of pure expediency. If we place the blame on someone else, it takes the heat off of ourselves. This process can happen at a collective as well as at an individual level. Take, for example, the credit crunch of 2007–2008. This was a disaster involving investment bankers, regulators, politicians, mortgage brokers, central bankers, and retail creditors. But the public (and many politicians) chose to focus the blame almost exclusively on bankers.


pages: 624 words: 127,987

The Personal MBA: A World-Class Business Education in a Single Volume by Josh Kaufman

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Albert Einstein, Atul Gawande, Black Swan, business process, buy low sell high, capital asset pricing model, Checklist Manifesto, cognitive bias, correlation does not imply causation, Credit Default Swap, Daniel Kahneman / Amos Tversky, David Heinemeier Hansson, David Ricardo: comparative advantage, Dean Kamen, delayed gratification, discounted cash flows, Donald Knuth, double entry bookkeeping, Douglas Hofstadter, en.wikipedia.org, Frederick Winslow Taylor, George Santayana, Gödel, Escher, Bach, high net worth, hindsight bias, index card, inventory management, iterative process, job satisfaction, Johann Wolfgang von Goethe, Kevin Kelly, Lao Tzu, loose coupling, loss aversion, Marc Andreessen, market bubble, Network effects, Parkinson's law, Paul Buchheit, Paul Graham, place-making, premature optimization, Ralph Waldo Emerson, rent control, side project, statistical model, stealth mode startup, Steve Jobs, Steve Wozniak, subscription business, telemarketer, the scientific method, time value of money, Toyota Production System, tulip mania, Upton Sinclair, Vilfredo Pareto, Walter Mischel, Y Combinator, Yogi Berra

You still had to clean, but it took more time for things to get dirty again, so the Product saved the user significant time and effort. Once the Product went into testing, however, it was apparent that the idea wasn’t feasible. The Product genuinely worked, but users didn’t realize it—they had a hard time believing the Product worked, since they couldn’t see anything happening. After the test phase was complete, the project was canceled. Absence Blindness is a cognitive bias that prevents us from identifying what we can’t observe. Our perceptual faculties evolved to detect objects that are present in the Environment. It’s far more difficult for people to notice or identify what’s missing. Examples of Absence Blindness are everywhere. Here’s a common example: great management is boring—and often unrewarding. The hallmark of an effective manager is anticipating likely issues and resolving them in advance, before they become an issue.


pages: 539 words: 139,378

The Righteous Mind: Why Good People Are Divided by Politics and Religion by Jonathan Haidt

4chan, affirmative action, Black Swan, cognitive bias, illegal immigration, impulse control, income inequality, index card, invisible hand, meta analysis, meta-analysis, Necker cube, out of africa, Peter Singer: altruism, phenotype, Ralph Waldo Emerson, Richard Thaler, Ronald Reagan, social web, stem cell, Steven Pinker, The Spirit Level, theory of mind, Thomas Malthus, Tony Hsieh, ultimatum game

Cambridge, UK: Cambridge University Press. Lepre, C. J., H. Roche, D. V. Kent, S. Harmand, R. L. Quinn, J. P. Brugal, P. J. Texier, A. Lenoble, and C. S. Feibel. 2011. “An Earlier Origin for the Acheulian.” Nature 477:82–85. Lerner, J. S., and P. E. Tetlock. 2003. “Bridging Individual, Interpersonal, and Institutional Approaches to Judgment and Decision Making: The Impact of Accountability on Cognitive Bias.” In Emerging Perspectives on Judgment and Decision Research, ed. S. L. Schneider and J. Shanteau, 431–57. New York: Cambridge University Press. Lilienfeld, S. O., R. Ammirati, and K. Landfield. 2009. “Giving Debiasing Away: Can Psychological Research on Correcting Cognitive Errors Promote Human Welfare?” Perspectives on Psychological Science 4:390–98. Liljenquist, K., C. B. Zhong, and A.


pages: 428 words: 121,717

Warnings by Richard A. Clarke

active measures, Albert Einstein, algorithmic trading, anti-communist, artificial general intelligence, Asilomar, Asilomar Conference on Recombinant DNA, Bernie Madoff, cognitive bias, collateralized debt obligation, complexity theory, corporate governance, cuban missile crisis, data acquisition, discovery of penicillin, double helix, Elon Musk, failed state, financial thriller, fixed income, Flash crash, forensic accounting, friendly AI, Intergovernmental Panel on Climate Change (IPCC), Internet of things, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge worker, Maui Hawaii, megacity, Mikhail Gorbachev, money market fund, mouse model, Nate Silver, new economy, Nicholas Carr, nuclear winter, pattern recognition, personalized medicine, phenotype, Ponzi scheme, Ray Kurzweil, Richard Feynman, Richard Feynman, Richard Feynman: Challenger O-ring, risk tolerance, Ronald Reagan, Search for Extraterrestrial Intelligence, self-driving car, Silicon Valley, smart grid, statistical model, Stephen Hawking, Stuxnet, technological singularity, The Future of Employment, the scientific method, The Signal and the Noise by Nate Silver, Tunguska event, uranium enrichment, Vernor Vinge, Watson beat the top human players on Jeopardy!, women in the workforce, Y2K

Implicitly they are saying that nothing new ever happens, despite the manifest evidence to the contrary. History is full of examples of things happening for the first time. In fact, much of what is taught in high school history classes is simply a list of things that happened for the first time: the first flight of an aircraft, the first man on the moon, the first African American President of the United States, etc. Social psychologists use the term “cognitive bias” to describe the filters, blinders, or limits we place between our points of view and reality. As we have seen in earlier chapters, one of the cognitive biases most relevant to our discussion is the “availability bias,” a filter on perception and thinking derived from relying on familiarity or prior experience. Most predicted events that would be an initial occurrence suffer from the audience’s availability bias, or lack of past experiences to which to relate the prediction.


pages: 685 words: 203,949

The Organized Mind: Thinking Straight in the Age of Information Overload by Daniel J. Levitin

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airport security, Albert Einstein, Amazon Mechanical Turk, Anton Chekhov, Bayesian statistics, big-box store, business process, call centre, Claude Shannon: information theory, cloud computing, cognitive bias, complexity theory, computer vision, conceptual framework, correlation does not imply causation, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, delayed gratification, Donald Trump, en.wikipedia.org, epigenetics, Eratosthenes, Exxon Valdez, framing effect, friendly fire, fundamental attribution error, Golden Gate Park, Google Glasses, haute cuisine, impulse control, index card, indoor plumbing, information retrieval, invention of writing, iterative process, jimmy wales, job satisfaction, Kickstarter, life extension, meta analysis, meta-analysis, more computing power than Apollo, Network effects, new economy, Nicholas Carr, optical character recognition, Pareto efficiency, pattern recognition, phenotype, placebo effect, pre–internet, profit motive, randomized controlled trial, Rubik’s Cube, Skype, Snapchat, statistical model, Steve Jobs, supply-chain management, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Bayes, Turing test, ultimatum game, zero-sum game

In cases of in-group/out-group bias, each group thinks of the other as homogeneous and monolithic, and each group views itself as variegated and complex. You’re probably thinking that a cure for this is increased exposure—if members of groups get to know one another better, the stereotypes will fall away. This is true to a large degree, but in-group/out-group bias, being so deeply rooted in our evolutionary biology, is hard to shake completely. In one experiment, men and women judging one another as a group still fell prey to this cognitive bias. “It is impressive,” Mick Rothbart wrote, “to have demonstrated this phenomenon with two groups who have almost continual contact, and a wealth of information about one another.” Once we have a stereotype, we tend not to reevaluate the stereotype; we instead discard any new, disconfirming evidence as “exceptions.” This is a form of belief perseveration. The serious problems of famine, war, and climate change that we face will require solutions involving all of the stakeholders in the future of the world.


pages: 798 words: 240,182

The Transhumanist Reader by Max More, Natasha Vita-More

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23andMe, Any sufficiently advanced technology is indistinguishable from magic, artificial general intelligence, augmented reality, Bill Joy: nanobots, bioinformatics, brain emulation, Buckminster Fuller, cellular automata, clean water, cloud computing, cognitive bias, cognitive dissonance, combinatorial explosion, conceptual framework, Conway's Game of Life, cosmological principle, data acquisition, discovery of DNA, Douglas Engelbart, Drosophila, en.wikipedia.org, endogenous growth, experimental subject, Extropian, fault tolerance, Flynn Effect, Francis Fukuyama: the end of history, Frank Gehry, friendly AI, game design, germ theory of disease, hypertext link, impulse control, index fund, John von Neumann, joint-stock company, Kevin Kelly, Law of Accelerating Returns, life extension, lifelogging, Louis Pasteur, Menlo Park, meta analysis, meta-analysis, moral hazard, Network effects, Norbert Wiener, P = NP, pattern recognition, phenotype, positional goods, prediction markets, presumed consent, Ray Kurzweil, reversible computing, RFID, Richard Feynman, Ronald Reagan, silicon-based life, Singularitarianism, stem cell, stochastic process, superintelligent machines, supply-chain management, supply-chain management software, technological singularity, Ted Nelson, telepresence, telepresence robot, telerobotics, the built environment, The Coming Technological Singularity, the scientific method, The Wisdom of Crowds, transaction costs, Turing machine, Turing test, Upton Sinclair, Vernor Vinge, Von Neumann architecture, Whole Earth Review, women in the workforce, zero-sum game

If we are to pursue transhumanism while maximizing the benefits and minimizing the risks of potent technologies, our thinking needs to be structured. By structuring the decision process appropriately, we can minimize these biases and other typical decision-making weaknesses, while enhancing our abilities to create options and ­intelligently choose from among them. Intelligent structuring of decision-making: Reduces individual cognitive bias and strengthens objectivity by controlling unstructured judgment and unfounded inputs and by managing group dynamics with a systematic framework. Structuring can systematically check for biases and standard kinds of errors, as well as making conditions more conducive to objectivity. Improves decision accuracy by specifying methods and inputs. Even the most objective decision-makers will go wrong if they use unreliable tools and poor-quality information.


pages: 669 words: 210,153

Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and World-Class Performers by Timothy Ferriss

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Airbnb, Alexander Shulgin, artificial general intelligence, asset allocation, Atul Gawande, augmented reality, back-to-the-land, Bernie Madoff, Bertrand Russell: In Praise of Idleness, Black Swan, blue-collar work, Buckminster Fuller, business process, Cal Newport, call centre, Checklist Manifesto, cognitive bias, cognitive dissonance, Colonization of Mars, Columbine, commoditize, correlation does not imply causation, David Brooks, David Graeber, diversification, diversified portfolio, Donald Trump, effective altruism, Elon Musk, fault tolerance, fear of failure, Firefox, follow your passion, future of work, Google X / Alphabet X, Howard Zinn, Hugh Fearnley-Whittingstall, Jeff Bezos, job satisfaction, Johann Wolfgang von Goethe, John Markoff, Kevin Kelly, Kickstarter, Lao Tzu, life extension, lifelogging, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, Mason jar, Menlo Park, Mikhail Gorbachev, Nicholas Carr, optical character recognition, PageRank, passive income, pattern recognition, Paul Graham, peer-to-peer, Peter H. Diamandis: Planetary Resources, Peter Singer: altruism, Peter Thiel, phenotype, PIHKAL and TIHKAL, post scarcity, premature optimization, QWERTY keyboard, Ralph Waldo Emerson, Ray Kurzweil, recommendation engine, rent-seeking, Richard Feynman, Richard Feynman, risk tolerance, Ronald Reagan, selection bias, sharing economy, side project, Silicon Valley, skunkworks, Skype, Snapchat, social graph, software as a service, software is eating the world, stem cell, Stephen Hawking, Steve Jobs, Stewart Brand, superintelligent machines, Tesla Model S, The Wisdom of Crowds, Thomas L Friedman, Wall-E, Washington Consensus, Whole Earth Catalog, Y Combinator, zero-sum game

One introspective night, I had some wine and asked myself: “Do I really need to make money back the same way I’m losing it?” If you lose $1,000 at the blackjack table, should you try and recoup it there? Probably not. If I’m “losing” money via the mortgage payments on an empty house, do I really need to cover it by renting the house itself? No, I decided. I could much more easily create income elsewhere (e.g., speaking gigs, consulting, etc.) to put me in the black. Humans are very vulnerable to a cognitive bias called “anchoring,” whether in real estate, stocks, or otherwise. I am no exception. I made a study of this (a lot of good investors like Think Twice by Michael Mauboussin), and shortly thereafter sold my San Jose house at a large loss. Once my attention and mind space was freed up, I quickly made it back elsewhere. #11—What if I could only subtract to solve problems? * * * From 2008 to 2009, I began to ask myself, “What if I could only subtract to solve problems?”