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Full Description
Our brains are wonderful tools, but they are nonetheless prone to misjudging information and making suboptimal decisions. In many situations, we act without fully considering why we are behaving in a certain way. We like to feel good about ourselves; we interpret the world using stories instead of statistics; and we make instinctive judgments and then stick to them. How can we think more clearly and make better decisions—in business and in life?
This book is a practical and accessible introduction to mental models, teaching readers how to harness their power to think more clearly, make better decisions, and learn more effectively. The essential step in applying these concepts and frameworks, Jaime Lester shows, is to pause. Take a moment to reflect on the options, decide on the optimal approach before launching into action, and reexamine the process regularly. Drawing on a variety of academic disciplines as well as cognitive and behavioral research, Lester offers step-by-step templates to improve readers' critical thinking and decision making. He guides readers through honing their reasoning in areas including finance, economics, statistics, and daily life and draws broader lessons for cultivating a prudent investment approach as well as personal well-being and happiness. Written in a conversational and witty style and featuring memorable examples and illustrations, Pause to Think shares essential lessons and tools for all readers interested in the power of mental models.
Contents
Preface
Part I. Important Concepts
1. Cognitive Biases
2. The Humanities
3. Investing and Science
4. Economics and Business
5. Probability and Statistics
Interlude
Part II. Important Frameworks
6. Decisions
7. Learning
8. Understanding
9. Investing
10. Happiness
A Fond Farewell
Answers to Exercises
Resources and Recommended Reading
Acknowledgments
Notes
Index
