Friday, September 2, 2011

Making the right choice

How good are we at making choices?.Are they rational enough to lead you to a desirable conclusion?
Well, at the end of the day if we get the thing we want, in the state we want we say the choice we made was right.If we end up getting an undesired result we think our choice has not been rational enough or the choice we made was perfect but some other unintended factors tucked their heads out and altered the path of the result which was heading our way.
Ok, to get to the point the reason why i'm babbling about decision making stuff is because i happen to read a book on behavioral economics--Predictably Irrational. BTW Behavioral Economics has nothing to do with the stock market or the bond market or any other kind of monetary jargon and can easily be understood by anyone.As every other behavioral economics book this one also digs into thought process of decision making but not so deep so as to enter its philosophical aspect. Rather it studies the external parameters which affect this decision, varies them(the parameters) freakishly until the decision-maker takes a u-turn and selects an option which previously sounded completely irrational or in some cases never even thought of.
Here are some books I've read/reading/to read on the same subject:

      
  FREAKONOMICS
 This one's a best-seller written by an economist who hates maths! and digs deep into massive amount of data to
find a hidden parameter which acts as a decisive factor in the entire transaction.











SUPERFREAKNOMICS
 This book is sequel to Freaknomics, contains more anecdotes supported by the data posing crazy questions like-Can Kangaroos save the planet!!!





So go ahead, grab one of these and learn to make choices the right way!

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