Heaven in business.
Can I please get an example of this bias. I don’t fully understand. What I’ve concluded is, say one sets a goal for themselves and one is aware of all the biases that influences one decision making. One makes the best decision that will ultimately get one to where one hopes to be?
it’s when you use a lot of the tendencies in for example a product to sell; like a soup of tendencies, you do it so good that the costumer has no choice but buy.
From what I understand it is just that the biases can compound and become more potent. An auction is one example: there’s a man standing above all people (authority), there’s social-proof bias, stress influence because you need to buy right now, etc.
It all makes it much more difficult to resist than just one or two of them.
To use Munger’s perhaps favorite example, when you have a group of people so brainwashed that they all commit voluntary suicide due to some cult-related prediction, that is such an outcome.
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