1. "Thinking, Fast and Slow" by Daniel Kahneman
I think we’ve all heard of this one. Bazerman says:
The development of decision research is the most pronounced influence
of the social sciences on professional education and societal change
that we have witness in the last half century. Kahneman is the greatest
social scientist of our time, and" Thinking, Fast and Slow" provides an
integrated history of the fields of behavioral decision research and
behavioral economics, the role of our two different systems for
processing information (System 1 vs. System 2), and the wonderful story
of Kahneman’s relationship with Amos Tversky (Tversky would have shared
Kahneman’s Nobel Prize had he not passed away at an early age).
2. "Nudge: Improving Decisions About Health, Wealth and Happiness" by Richard Thaler & Cass Sunstein
This is another one I think most of you have heard of but it’s a
classic. I once used this book as the foundation to make the case to a
management team for hiring a group of behavioral psychologists. Along
with "Thinking, Fast and Slow" it is part of the ultimate behavioral economics reading list.
Nudge takes the study of how humans depart from rational decision
making and turns this work into a prescriptive strategy for action. Over
the last 40 years, we have learned a great deal about the systematic
and predictable ways in which the human mind departs from rational
action. Yet, we have observed dozens of studies that show the limits of
trying to de-bias the human mind. Nudge highlights that we do not need
to de-bias humans, we simply need to understand humans, and create
decision architectures with a realistic understanding of the human to
guide humans to wise decisions. Nudge has emerged as the bible of
behavioral insight teams that are transforming the ways countries help
to devise wise policies.
3. "The Big Short: Inside the Doomsday Machine" by Michael Lewis
Lewis is an amazing writer, with the talent to capture amazing
features of how humans have the capacity to overcome common
limitations. Moneyball (that
would have been on the list, but I imposed a one book per author limit)
was a fascinating look about how overcoming common human limits allowed
baseball leaders to develop unique and effective leadership strategies.
In The Big Short, Lewis shows how people can notice, even when most of
us are failing to do so. Lewis shows that it was possible to notice vast
problems with our economy by 2007, and tells the amazing account of
those who did.
4. "Eyewitness To Power: The Essence of Leadership Nixon to Clinton" by David Gergen
This one looks fascinating.
David Gergen is an amazingly insightful intellect about so many
things, including the nature of Presidential leadership. His writing is
wonderful, and his ability to pull out the nuggets of effective
leadership in his closing chapter is a lasting contribution. You will
learn about four Presidents that have escaped you in the past, and in
the process, learn some insights about leadership in your organization.
5. "Moral Tribes: Emotion, Reason, and the Gap Between Us and Them" by Joshua Greene
This book has been recommended to me by so many smart people that there must be something to it.
Joshua Greene is a wonderful mix of insightful philosopher, careful
psychologist, and keen observer of human morality. If you have ever been
confronted with the famous “trolley problem”, and want to learn more,
Moral Tribes is the place to go. Whether you are a philosopher looking
for a new path, a psychologist looking for insight from a new direction,
or simply a human who wants to understand your own morality, this book
is terrific.
6. "Happy Money: The Science of Smarter Spending" by Elizabeth Dunn & Michael Norton
For decades, the study of consumer behavior has been dominated by the
question of how marketers can understand consumers to sell their
products and services. Dunn and Norton use contemporary social science
to provide insight into what consumers can do to make themselves, rather
than marketers, happy.
7. "The Art and Science of Negotiation" by Howard Raiffa
The Art and Science of Negotiation is where it all began from an
intellectual standpoint, where Raiffa provides insight into how to think
systematically in a world where you cannot count on the other side to
do so.
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