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Numerosity heuristic

The Numerosity Heuristic

Learning about the numerosity heuristic can save you money. As a three-time CEO, I’ve had a lot of experience with incentive stock options and have been appalled by how poorly they are understood by employees. Many employees fixated on the number of shares they were granted, rather than the percentage of shares outstanding. They would multiply their…

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Decision Quicksand

Why are unimportant decisions so hard for people to make? The conventional wisdom is people don’t make decisions due to the fear of being wrong. However, in “Decision Quicksand: When Trivial Choices Suck Us In,” research suggests excessive information and extraneous choices trick our brains into thinking a decision is more complicated than it really…

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Is There No Such Thing As Bad Publicity?

While popular wisdom is that any publicity is good publicity, academic research has largely shown negative word of mouth hurts company brand and sales. For example, negative movie reviews decrease box office receipts to the point that Hollywood pundits believe that it is “almost impossible to recover from bad buzz.” As a specific example, Viacom Chairman…

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Busy work

Studying Busy Work

Would you rather do nothing or do something that serves no purpose? University of Chicago researchers discovered most people, given even a flimsy excuse to be busy, will choose doing something over doing nothing. People were happy when they were busy, even if they were forced to be busy or if the task had no…

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Flattery Works, Sometimes

The Mae West attributed quote “flattery will get you everywhere” may be good advice. Sometimes. Research published in the Journal of Marketing Research demonstrates flattery leaves a lasting and positive impression of the flatterer, even when people believe it is insincere. In the experiment, participants were shown a flyer from a fictitious clothing store complimenting…

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