The Irrationality Illusion: How To Make Smart Decisions And Overcome Bias

by Presh Talwalkar

This handbook explains the many ways we are biased about decision-making and offers techniques to make smart decisions. The biases of behavioral economics are like optical while we fall for them every time, we can also learn to recognize the patterns and see through the tricks. Fool me once, shame on you. Fool me twice...you won't get fooled again after reading this book.

Genres: Psychology, Nonfiction

138 pages, Paperback

Published February 1, 2016

Reviews

[Rouzanna Sarkissian · Rating 4 out of 5]

A very clear and concise guide to cognitive biases, how they can affect our decisions, and how we can learn to overcome them. In the author's own words: "Just as we can recognize optical illusions and differentiate perception from reality, we can be alert for cognitive biases and distinguish between a decision trap and a rational choice."

The structure of the book is simple yet effective. For each cognitive bias (a total of about 50, from "Percent savings fallacy" and "Anchoring" to "Untested preferences" and "Volunteer's dilemma"), there are three sub-sections: "The Illusion", "The rational response", and "Examples", followed by Notes that contain relevant sources and literature. Some of the examples were really interesting and new to me: e.g. those related to the survivorship bias and zero risk bias. In some of the chapters Mr. Talwalkar briefly touches upon the basics of the game theory. The way he explains even some of the rather difficult (for a layperson) concepts made me want to read another of his books, "The Joy of Game Theory: An Introduction to Strategic Thinking", which I am doing now.

Throughout the book, I couldn't help thinking that it was perhaps too basic--to my taste, at least. I could also use a few more examples for each bias. Still, "The Irrationality Illusion: How To Make Smart Decisions And Overcome Bias" is a great starting point for everyone who is willing to learn how to make better, more logical and impartial decisions.

[Danti Delray · Rating 1 out of 5]

The irony of the title, is that the real bias, is the anti-intuition bias (the bias bias, per Nassim Taleb) among collusive psychologists, and cognitive scientists. This book provides the ultimate strawman against the powers of intuitive thinking.

In another attempt to glorify and romanticize reasoning and analytical thought, Talwalker, with his self-implied 'brilliance', completely overlooks the fact that deep rationalization requires informational and temporal cues to be effective. Talwalker enjoys a grandiose sense of intellect, as he pretends that 'thinking hard' in problems where all of the relevant information is conveniently in front of you, makes one intelligent/brilliant, meanwhile confusing a complicated answer, with a complicated problem- the latter which are nowhere to be found throughout his book. Analysis is not the hallmark of genius - but rather, one who is conflated with genius in our era: the quick learner.

Talwalkar is an extreme rationalist, with his closed-system, contrived, examples. Systematic oppression of the intuitive mind is the greatest problem of the 21st century- when the empirical genius has all, but disappeared. With this work, Talwalkar has only done well in contributing to the form of mental slavery that has become prevalent among achievement < IQ types, extreme rationalists, and graying anglophiles.

[Brandon Theard · Rating 5 out of 5]

Really Insightful

Very informative and insightful. Gives a good foundation and starting point to expand & explore Behavioral Economics. I highly recommend reading and taking notes. It has made more mindful of myself especially the Sunk Cost Fallacy.