100 books like Mixed Signals

There is much evidence that individuals often suffer from inertia when it comes to making significant decisions – including investment choices.

This engaging book by Professor Milkman at the Wharton School aims to create a climate in which “change” can be accomplished in an efficient, systematic, and relatively painless way. There are numerous examples of improvements by both individuals and organizations. This highly readable book is a must for anyone interested in creating and sustaining positive change habits, for example, to encourage increased savings and systematic investment policies.

Professor Milkman is one of our successful undergraduate alums and participates on the advisor committee of the ORFE Department at Princeton. She is a terrific teacher and writer. The lessons in this book are most appropriate for investors who are interested in establishing and maintaining sound habits to improve their investment performance.

Parents are the foundation of our society. However, too many parents do not receive the support they need to meet the needs of their children.

Dr. Dana Suskind, my incredible wife, combines the latest science on the key role of parents in the development of children’s brains with stories of the experience of parents left shouldering this vital responsibility. Leaving parents unsupported is detrimental not only to children and families, but also society.

This book is essential for all members of society to read in order to understand why and, importantly, how we must support parents. Parent Nation provides a blueprint for a more sustainable future.

There are countless amazing insights from Influence Is Your Superpower, by Yale’s Zoe Chance.

Three that stick with me the most for applying these insights at work are: 1) Zoe’s Magic Question of “What would it take?” This little question is so powerful in coming up with innovative solutions that increase buy-in from the person you are asking (and Zoe of course explains why in the book). 2) people are more likely to say yes to you than you may think, so simply asking is important to increasing your influence. 3) saying “no” is key to success (and isn’t as hard as it seems).

She encourages a 24-hours of “no” challenge that can help anyone get more comfortable with saying no. 

We all loved Freakonomics. The incredible Stephen J. Dubner and Steven Levitt did it again in their second book Super Freakonomics.

Thinking like an economist is a powerful tool. What might surprise you are the motley assortment of questions that you can think about from the perspective of an economist.

This book is bold, funny, and insightful. And what’s the underlying theme? Well, it’s one thing all economists can agree on – incentives matter. Dubner and Levitt are masterful storytellers and teachers.

Even if you aren’t interested in thinking like an economist, their perspective on topics covered is worth the read. 

This book takes a deeper look into the psychology of choices and pricing.

It helps provide more context and understanding around some familiar tactics and what drives buyer’s decisions. While price setting can be a technical activity, leaders need to understand the softer/behavioral skills to sell that price both internally and externally. Both components are important in order to get your pricing right.

The markets are always changing. My ability to maintain performance for over 25+ years I believe comes from my deep foundation in the universal principles that drive market prices.

This book was pivotal in my understanding that some things never change. It is a bit difficult to get through, since it was written in the early 1900s. I think the strangeness of the language forced me to really think through and understand the lessons the book teaches.

In my experience, mental strengthening is step #1. 

Then you need to learn the art of behavioral analysis and economic psychology if you want to be able to consistently understand why markets move so you can begin to forecast those movements…

This book is a great place to get that process started.

Harvard psychologist Daniel Gilbert uses wit and science to reveal how we generally fail to predict what makes us happy and how we can do better.

I loved his discussions of why lottery winners aren't happier for long, how our memories create a "rosy past" illusion, and even why bad experiences can sometimes be better than good ones.

I loved the engaging stories and insightful experiments that Gilbert uses to dismantle common assumptions about happiness and offers fresh perspectives. I gained self-awareness and discovered unexpected paths to finding and savoring happiness.

Strap in for a thought-provoking journey that may just change how you view your own happiness and that of others-all with a healthy dose of humor.

Perhaps no academic theory has had a more pernicious impact on how we understand and regulate the markets than the “rational market hypothesis” – the theory that “markets know best” and work best if left alone. Justin Fox explains the rise, the rule, and the ruin of this powerful but fundamentally flawed idea in a remarkably engaging way. A delight to read!

Hyperbolic discounting is a term used in behavioral economics to describe our tendency to overvalue immediate gratification while undervaluing future rewards. When asked to choose between getting (A) one apple a year from now or (B) two apples a year and a day from now, people pick (B). However, if the choice is between getting (A) one apple today or (B) two apples tomorrow, people find (A) more attractive. Why is it so difficult to acquire good habits, like going to bed early or getting important work done, instead of playing with our smartphone? The idea of hyperbolic discounting offers a brilliant explanation, shedding light on the troublesome natures we humans possess. Although that’s not the main focus of this book, it’s still an excellent, easy-to-read introduction to behavioral economics.

As of 2023, behavioral economics is no longer a surprising new look at old economics principles–but that doesn’t change just how entertaining, surprising, and challenging you will find the experiments detailed in Predictably Irrational. 

In one notable experiment, Dr. Ariely placed six-packs of soft drinks next to plates of cash inside of communal dorm fridges–to prove we tend to be honest about cash but feel no compunction about swiping someone else’s Coke. In another memorable experiment, male volunteers were asked moral questions when they were in a state of arousal–which helped prove that morals are flexible depending on the circumstances. 

Reading this book will make you realize just how often you make decisions–especially financial decisions–that are weird, illogical, and irrational.