4th September 2010
Thanks to Vivek Iyer I spent about two hours today discovering about, watching (Youtube), and hearing (on radio) Baba Shiv, Professor of Marketing at Stanford. Recall my review of Gut Feelings by Gerd Gigerenzer? And citations of neuroeconomics books? Well, Baba Shiv is one more author in that line, a genius at work unpacking our brain and showing us for what we actually are.
The key point he makes is that emotions are critical to decision making. That's doesn't mean that rushing to judgement (Blink!) is a good thing.
He also shows how our expectations of value are determined by our emotions which are very impressionable and influenced by the price sticker! Stick a higher price on a bottle of wine and people not just report but EXPERIENCE more pleasure!
Further, pleasure is more in the anticipation of an event than in the event itself. Finally, our willpower is very weak and easily comes under pressure. Solution: just do one thing at a time: keep one resolution. Only one. Focus. Don't be harebrained.
Here are some useful links:
c) And now a Youtube video lecture. Enjoy!