The Top 4 Lessons in Behavioral Economics From Dilbert
Written by Scott Adams, is an 'infamous' comic strip that shows a humorous look in office life, but also manifests lessons on behavioral economics.
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.... refers to the study of how social and psychological factors (decisions made by an individual, institution or business) can affect the market and its resources.
Dilbert’s boss shows overconfidence by assuming that all management is – himself included – above average. This is hardly the truth, in general. As for Dilbert’s boss, he completely misses the jab attacking his math skills because he’s too focused on himself.
Overconfidence of bosses can end up putting their companies in risky ventures. We all need to take some time to cool our egos and look at the world around us more realistically.
Framing refers to how a person makes decision depending upon how the information is presented. Framing effect is often used in marketing to influence decision-makers and purchases.
You can use this strategy to engage customers to buy your products. But depending on how you frame your messages, it can also be used to make the best of a bad situation.
Sometimes, it is hard to let go of something valuable without realizing that letting go is greater than we think.
Sometimes, a loss can feel more powerful than a gain of the same magnitude and vice versa. Considering the pain of a loss – or euphoria of a gain – can weigh heavily on future decisions it can cause more harm than good.
Confirmation bias is when you actually seek out evidence to support a predisposed belief.
In this strip, Dilbert's boss believes that his managerial skills can affect the company stock. His belief is later reinforced, mostly by coincidence. However, because he was affected by bias he mistook the research as confirmation.
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The point is that the more specific a lesson of history is, the less relevant it becomes.
One of the interesting parts of the Great Depressions from history is not just how the economy collapsed, but how quickly and dramatically people’s views changed when it did.
People suffering from immediate, unexpected adversity are likely to adopt views they previously thought absurd. It’s not until your life is in full chaos (with your hopes and dreams your dreams unsure) that people begin taking ideas they’d never consider before seriously.
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A good poker player chooses a table where he has a better chance to win. A group of casual players is better than a table of professional players.
In your career, you need to pick the ...
A poker player learns many skills initially about different combinations of cards, and how to play a basic game. He keeps on improving by further calculating the other aspects of the game, which were not understood before.
Similarly, one needs to identify the basic skills for the job and then grow with experience, improving your dealings with people and situations.
A successful poker player constantly plays a high standard, and does not make impulsive decisions. A long-term discipline in a career path builds one's wealth, supported by one’s past success.
A single wrong decision can demolish one’s reputation and credibility.
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Great leaders look at the fundamental forces of life, and ask 'Why'. There is a drive they carry, a cause, a purpose, that makes them inspired to achieve something bigger than themselves.
Leaders gain followers due to trust. If customers (or end-users), and employees understand your core beliefs and drive, you start to gain their trust.
This happens when you demonstrate and communicate that you share the same values and convictions.
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