Human beings, although efficient market hypothesis say the opposite, we are not rational beings in general. There are many psychological factors that have a great influence when making decisions in our life, even in matters of an economic nature. The book I'm going to talk about has helped me better understand our way of thinking and making decisions, which ends up having important implications for our lives and our finances. In this article I will give you my opinion about the book What matters is whyby Uri Gzeeny and John List.
Technical sheet of What matters is why
- Title: What matters is why. The ulterior motives of our actions.
- Authors: Uri Gneezy and John A. List
- Editorial:Active Company
- Año: 2.014
- Page: 349
Analysis and opinion of the book
As always, I like to do a little introduction about the authors of the book. Uri Gneezy is a professor of economics specializing in behavioral economics at the Rady School of Management at the University of California San Diego. John A. List is Professor of Economics at the University of Chicago.
One of the branches of economics that fascinates me the most is behavioral economics. It is dedicated to delving into the brains of economic agents to determine the reasons that motivate their actions. It is a relatively young branch of economics, although every time there are new books and studies that are deepening in this field. What matters is why is one of them.
I have to warn you that if what you are looking for is a book focused on psychology applied to stock investment, Lor what matters is why It is not your best option, as it focuses on other topics not directly related to investing. Of course, they are very topical issues and the results of their analyzes are tremendously interesting.
What matters is why it is not a theoretical book either, but rather focuses on the analysis of real cases. The book explains a series of experiments that the authors have carried out over the last few years. For example, the book studies the best way to encourage early childhood education in troubled neighborhoods, the economic reasons behind discrimination, or the influence of society on differences in competitiveness between the sexes. In some cases, it is possible that the results of these studies make you review your opinions on some issues, as it has happened to me.
The book is enjoyable and easy to read. In addition, it does not require previous knowledge of economics or psychology to make the most of it.
If you are interested in the subject, I leave you this little talk (yes, in English) by Professor Uri Gneezy on incentives and behavior changes:
Assessment of What matters is why
What matters is why I found it a very interesting book. Although his teachings are not directly applicable to investing in the stock market, understanding human behavior always helps to be better investors.
- Score: 8
- Level: Basic
- Recommended to: Those interested in better understanding the way in which people make decisions.
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