Annotated Reading List

DEF’s framework for teaching improved decision making has been built over many years and integrates the disciplines of decision analysis, cognitive and behavioral psychology, and elements of neuroscience. Below is a selection of readings we consider valuable contributions to the domain of decision making. These have been grouped into some general categories in order to provide readers with different interests a convenient way of choosing a selection. These are not in order of preference; instead, we recommend all of these books for the reasons stated in the descriptions.

Broad Perspective

How We Decide – Jonah Lehrer
This is one of the best syntheses of the current behavioral, neuro, and decision sciences. Lehrer integrates well told anecdotes with their underlying science in an entertaining and informative way. This is an easy and extremely valuable read to get a broad understanding of human choice. Though Lehrer is not a primary researcher, he is very well grounded in the science underlying decision making. Instead, he has dedicated himself to “translating” the science into language we can all understand.

Predictably Irrational – Dan Ariely
This is a marvelous study of human behavior. Ariely is a primary researcher, and his study designs are precise, clever, and revealing – a true master of identifying with painful precision how we short change ourselves when making decisions. The focus is primarily on economic decision making, but he has great insight into the way our minds work. (See links in recommended videos)

The Paradox of Choice – Barry Schwartz
In this well written and easy to read book, Schwartz brings focus to one of the practical problems we all face in our highly consumer oriented society – too much choice. He takes a very human approach to the challenge of choice and decision fatigue, and why at times we’d be better off with few alternatives to choose from. Frequently, our inability to apply filters to our world of choice results in confusion, analysis paralysis or fear of buyer’s remorse.  All of these things can make the experience of choosing, even for trivial decisions, an emotionally painful experience.

Advanced Reading

Thinking, Fast and Slow – Daniel Kahneman
Kahneman is the pre-eminent authority, and has encapsulated what has been learned over the last 40 years. In a clear and very readable volume, he takes us through the history of his professional path of discovery, exploring how our minds work and where the limitations are. Self-deprecating and full of humor and humanism, this will be considered a seminal work in the history of cognitive and behavioral science. This is thinking about thinking at the most comprehensive level, and he deserved the Nobel Prize.

The Drunkard’s Walk – Leonard Mlodinow
This is an in depth exploration into randomness in the world, and how chance plays a significant part in the outcomes of our lives. There is a good amount of probability theory, but no real math. Having a solid understanding of the role of chance, and the distinction between skill and luck, are fundamental concepts of our world. The lack of understanding these concepts may result in more poorly made decisions, and our reactions to their outcomes, than any other. Mlodinow has a fine sense of humor, and considering the nature of the subject this is surprisingly readable.

What IQ Tests Miss – Keith Stanovich
This is an academically oriented book, but it is easily the most lucid description of the shortcomings of the narrow definition of intelligence typically measured by IQ and other standardized tests. He specifically excludes non-cognitive skills (e.g. creativity, social skills, etc), not because they are unimportant, but because they are outside the scope of this discussion.  Explaining “why smart people do dumb things,” Stanovich defines rational behavior clearly, and then goes on to distinguish it from the traditional measures of IQ. He argues forcefully that we need to develop a measure for RQ (Rationality Quotient) so we can then create programs which focus on improving people’s rationality, as this may be far more important than IQ in determining life outcomes.

On Being Certain – Robert Burton
This is a challenging read.  It deals with one of the great mysteries of how our minds (and brains) go from a sense of not knowing something, to a sense of knowing it; in other words, how do we know what we know? What makes us think we know something? Burton is a neurologist, but a decent writer. There is some challenge in the way he words things, and considerable challenge in the concepts he presents. Read several other books on this list before trying this one.

Practical Advice

Don’t Believe Everything You Think – Thomas Kida
This is probably the most practical guide to improving decision making. It is not focused on youth in any sense, but the concepts hold for everyone. It is a user guide to trying to overcome many of the behavioral shortcomings we all suffer. This is a very useful book – less about theory (although very well grounded in theory), and all about being a better decision maker.

Nudge – Richard Thaler and Cass Sunstein
This is a collaboration between two powerful thinkers. This is a book with policy making at its core, so there are some political elements in its approach. Thaler is one of the founders of behavioral economics and worked closely with Daniel Kahneman (Nobel winner), who, along with Amos Tversy, developed the field of behavioral economics. Sunstein is a professor of law. The book is about how human tendencies have negative social impact, and how we can develop policies that nudge (but never compel) people in the direction that is in their best interest. Tricky business, but well thought out. It is based on much of the same behavioral research as others, but tries to look for real solutions to our shortcomings.

Mistakes Were Made (But Not by Me) – Carol Tavris and Elliot Aronson
This is an exploration of primary sources of mistaken thinking. It delves deeply into rationalization, its causes and effects, and the wide range of consequences our tendency to “justify” our behavior has. We can see ourselves, family, friends and neighbors in the well-developed examples in this book. There is great truth here, and we should heed the lessons contained within.

Decision Traps – J. Edward Russo and Paul J.H. Schoemaker
Written by an academic and a decision consultant, this earlier work has a practical focus on business decision making. The authors take the developing work in cognitive bias and apply it to the common failure modes exhibited in corporate settings. They focus on providing useful techniques for avoiding falling into "Decision Traps." There’s plenty of academic research and practical experience supporting their recommendations.