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The Top 4 Lessons in Behavioral Economics From Dilbert

Behavioral Economics

.... 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.

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The Top 4 Lessons in Behavioral Economics From Dilbert

The Top 4 Lessons in Behavioral Economics From Dilbert

https://www.business2community.com/consumer-marketing/top-4-lessons-behavioral-economics-dilbert-01087841

business2community.com

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Key Ideas

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.

A Lesson in Overconfidence

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 venturesWe all need to take some time to cool our egos and look at the world around us more realistically.

A Lesson in Framing

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.

A Lesson in Loss Aversion

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.

A Lesson in Confirmation Bias

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.

SIMILAR ARTICLES & IDEAS:

Voltaire

“History never repeats itself. Man always does.”

Voltaire
History lessons
The most important lessons from history are the takeaways that are so broad they can apply to other fields, other historical times, and other people. 

The point is that the more specific a lesson of history is, the less relevant it becomes.

Adopting new views 

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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Pick The Right Table
Pick The Right Table

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 ...

Keep Improving

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.

Stay Disciplined

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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The Why of Life
The Why of Life

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.

Clarity, Discipline and Consistency

  • Clarity Of Why: Great leaders have a clarity of Why they are doing what they do. 
  • The Discipline of How: The Why is held accountable by how things are done, and it is the most challenging component. 
  • The Consistency of What: Your 'What' is the result of your beliefs and actions. Everything you say or do, your products or services, has to have a certain consistency.

Followers Need Trust

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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