Book Review: Nudge

“So to put it simply, forcing people to choose is not always wise, and remaining neutral is not always possible.”

Nobel Laureate Richard Thaler and Cass Sunstein present a compelling argument for using choice architecture to nudge people into making the better choice from amongst the available options. More broadly the authors advocate for libertarian paternalism; the idea that people should be free to make decisions for themselves (libertarian) conditional on providing a nudge for the more ideal decision (paternalism).

The paternalism part of their philosophy originates from the observation that people are not perfectly rational. They are prone to biases, such as the self-serving bias, the money illusion, the tendency for collaborative filtering and much more. These biases prevent people from making the best available choice for themselves across all aspects of life, from retirement planning to preventing environmental damage. The authors caution that in the absence of paternalism practicing libertarianism could lead to bias-influenced ineffective decisions, thereby rooting the need for paternalism.

The authors provide a curated reading experience. Slowly building the tempo. They start with some less controversial fields such as 401 contributions and organ donation, wherein libertarian paternalism has yielded positive results. Having laid some credibility, they build up to more controversial fields such as privatizing marriage and modifying doctor-patient relationships under the tenet of libertarian paternalism. Finally, they defend their stance against some counter-arguments point by point. The book is a great example of literary swordsmanship.

Nudge is a book replete with knowledge and ideas. It provides an interesting insight into the current inefficiencies, a plausible explanation and solution for it. The concepts introduced in Nudge are applicable across many, if not all spheres of life. In addition, the book has some useful everyday tips, on topics ranging from buying warranty to investing in index funds. As such, everyone can gain something by experiencing the literary swordsmanship of Nudge.

Book Review: The Undoing Project

“The big choices we make are practically random. The small choices probably tell us more about who we are.”

Michael Lewis narrates the emotionally and intellectually engaging tale of how Daniel Kahneman and Amos Tversky presented the researched, highlighted and presented the oft ignored role of bias in human decision making in The Undoing Project. Lewis presents this academic pinnacle through a personal lens, describing the breakthrough as a product of a poetic friendship. The mix of poetry and scientific prose makes The Undoing Project a unique read.

Kahneman and Tversky famously formulated prospect theory which postulates the biases that lead to seemingly irrational decisions. Concepts such as the isolation effect, loss aversion, risk seeking in the domain of losses, framing effects, which are now well-known and applied across many fields, were born out of the experiments, experiences and discussions of Kahneman and Tversky. Lewis presents his retelling of how this came about. He spends considerable time describing the formative experiences themed around the anti-Semitic movement in Europe and then in Israel, which contributed differently to the lives of both.

Having set the stage, the builds up the scientific and emotional tempo as he narrates how the melding of these two minds led to the discovery of biases. Lewis emphasizes the importance of their work by highlighting how professions ranging from medicine to professional basketball were impacted for the better by it. The book culminates by describing how Kahneman heard the news of being a Nobel prize recipient for his work on prospect theory.

The undoing project forms a gripping read. However, those who are looking at the book for an academic understanding of how the prospect theory came to be, might be a bit disappointed. Overall, The Undoing Project is almost certain to leave you with a lot of food for thought. It could be about the beauty and unpredictability of human relationships or about the predictable errors in human perception and decisions.

Book Review: Quiet - The Power of Introverts in a World That Can’t Stop Talking

“The word introvert is not a synonym for hermit or misanthrope”

Susan Cain’s Quiet compassionately explains introverts through a combination of science and case studies. It is the author’s compassion which makes the book standout. In the beginning, Cain hits a chord with the reader by describing how the culture of personality engulfed America in the 1900s and placed extrovert characteristics on a pedestal. By extension, this meant that introvert characteristics were devalued. In the remainder of her book Cain presents the case for introverts, doing what introverts tend to avoid, bringing them in the limelight.

She leverages neuroscience to explain why introverts tend to get overstimulated easily and how this avoidance of seeking more noise helps introverts focus more. Cain builds on this to demonstrate and explain the positive side of being less loquacious. She cites examples of successful leaders, hedge fund managers and professors to affirm the fact that being an introvert can actually be an advantage. The book explores being an introvert across many settings - academic, professional, social, family and romantic, to discuss the introvert-specific challenges and suggests ways to overcome them. Along the way, Cain also emphasizes on how being an introvert is not the same as being shy or sensitive. This is a particularly useful insight since it makes room for shy and/or sensitive extroverts.

Overall, Cain uses a combination of scientific studies and interviews to drive home the idea that being true to yourself should not be at odds with being successful in today’s world, even for introverts. As an introvert, I found the book to be uplifting. It encouraged me to understand and leverage my introverted behavior instead of hiding it and making excuses for it. Cain’s writing style balances reason and emotion well, providing an entertaining education of introverted behavior.