An Enquiry Into Why People Do The Stuff They Do...

Risk Aversion – Why is The Pain of Loss Significantly More Important To US Than The Pleasure of Gain?


For us, for some strange reason, the sense of loss is much more powerful than the sense of gain. If you compare the intensity of emotion, sadness we feel when we lose $ 5 is much greater than the pleasure we get out of winning $ 10.

Consider the following example:

False Consensus Effect – Why do I think I am always right? More Importantly, Why Do I Think The World Agrees With Me?


Turns out it’s just not me who thinks he/ she is always right. In fact most of the people think that they are right and the world agrees with them.

So, why do I have this silly notion that majority of the people would agree with what I think to be true?

I have a theory… read on…

Admittedly, Much More of Our Decisions are based on Intuition than Logic. Here’s why..


Plato, the granddad of logic compared our mind with a chariot pulled by two horses.

Horse 1 was well bread and well behaved, representing good aspects of ourĀ emotion.

Horse 2 was the wild and untamed, even the best charioteer would have difficulty controlling it, representing bad parts of emotion.

Mind of a Teenager. Why Do They Do The Things They Do ?


“I just don’t know what is going through his mind!!”,

“I can not understand what’s the big deal in wearing that dress from last summer!!”

We all have gone through the exasperation of dealing with a teenager. Or if you are a teenage, dealing with the adults!!

They don’t seem to get us, and more importantly we don’t seem to get them.

As it turns out, there’s a perfectly plausible reason for them behaving the way they do. For this we need to understand a bit about what is going inside their brain… so brace yourself!! The following are the six points with which we can pretty much explain why teens do the things they do.

Why Do We Always Overestimate Our Capability and Underestimate the Probability of Things Going Wrong?

Wishful Thinking

Answer lies in fallacy called ‘Wishful Thinking.’ Every single person in this earth suffers from this. We find the comfort in this make-belief world even with it is most idiotic and downright illogical.

Even the people who are highly educated and who take pride in their ability to think logically and rationally suffer from this misconception.

You Want Your Child (or Your Employee) to Do Well In Life? Stop Praising Her


Yes, you heard me right, stop praising your child.

“Your painting is beautiful Lisa, you are a wonderful artist”
“That was a great presentation Fred, keep up the good work”

These are the words which can destroy the careers and lives….. read on

Cluster Effect – What’s the Madness Behind Seeing Meaning Where There Are None?


When Amy Winehouse died in 2011, I remember a friend asking me in a hushed voice “Do you know Amy became the latest victims of the ‘curse of 27’?” Naturally puzzled, I asked him to elaborate… turns out, there is a thing about famous singers dieing at the height of their career, interestingly at all the age of 27. The list goes like: Robert Johnson, Jimi Hendrix, Janis Joplin, Jim Morrison, Kurt Cobain and many more… all died when they were 27… wow.

So, what’s the connection?

Envy – Why Do Even The People With Perfectly Rational Mind Suffer From It? (And Why It Might Not Be Such A Bad Thing)


Let me ask you a hypothetical question:

You and somebody else (we’ll call him Jim) joined the organization same time, both of you are similarly qualified and currently in the same position. After the review, there were three possible options. Which one of the following would be the most desirable option for you?

A. Your salary is increased by $1000 while Jim’s increment is $ 500
B. Both yours and Jim’s salaries are increased by $ 1200 each
C. Your salary is increased by $1500 while Jim’s increment is $ 2000

If you are one of the people who thinks you are a logical person, your order of preference should be: C, B & A. After all, higher raise the better, isn’t it?

Turns out, it is not the case.