While on sabbatical this year, I have been enjoying some extra reading. I have just added two new books and one old one to my favorites list on my web site. I recommend them all highly to you.
The Undoing Project: A Friendship That Changed Our Minds Michael Lewis Dec 6, 2016 This remarkable and easy to read book is written as a biography of two Israelis, Daniel Kahneman and Amos Tversky, but along the way covers a long list of their remarkable insights and experiments. I highly recommend it to people who tried to read the original, dense book Thinking, Fast and Slow by Kahneman and Tversky, two pioneers of behavioral economics.
Decisive: How to Make Better Choices in Life and Work. Chip Heath and Dan Heath, Mar 26, 2013. This is more of a how-to book for business managers and anyone about ways of making better decisions, but along the way it has a nice overview of the many biases and irrationalities in our thought process. First example: when asked to choose between A and B, don’t. Instead figure out how to do A+B or something else even better. Lots of anecdotes and brief research summaries.
Blink: The Power of Thinking Without Thinking Malcolm Gladwell 2007. I read this book a long time ago, but added it here since it remains a very powerful and important book. I recommend and have read almost all of Malcolm Gladwell’s work (See especially Outliers and The Tipping Point). His work gives important insights into how people actually make decisions, which are often based on simple heuristics and very little information compared to how decisions are typically modeled by economists.