44 books like Sludge

From this book, I learned that cognitive errors and human misbehaviours are not necessarily in contradiction to rationality.

It taught me that the generally negative perspective on psychological mechanisms provided by behavioural economics is limited. By contrast, a deeper understanding of what rationality means is needed. This book enriched my own way of analyzing how psychological factors impact daily decisions.

The book was, for me, an inspiring journey and an enriching learning experience. While conventional behavioral finance tends to analyze deviations from rationality within economic decisions, this book diverges, offering a holistic behavioral framework.

I like that the book views individuals not merely as economic agents but as complete beings, with financial well-being acting as a gauge for overall life prosperity. I believe that Prof. Statman's third generation of behavioral finance represents a paradigm shift towards a constructive scientific approach. I fully share its primary objective to empower individuals in their pursuit of personal fulfillment and satisfaction.

This book inspired me to apply quantitative and theoretical models to analyse the impact of human psychology on financial decision-making. The book is sometimes a bit technical, but I felt that that the explanations around the mathematical requirements sufficiently supported the development of my own intuition about their economic and psychological motivation.

I learned from this book how to combine economic theory and psychology to explain empirical and experimental evidence on asset prices.  As a mathematician, I was excited to learn how Prof. Shefrin mathematically included psychological factors in classical models for financial decision-making and analyzed the implications for asset prices.

This book is certainly the most technical among my favorites. However, I cannot resist listing it here because I really love it. Honestly, I highly esteem Peter Wakker, and I learned tremendously much from his scientific papers. Therefore, I read this book with high expectations, and these were fully fulfilled.

I learned from this book what prospect theory is and how it developed. I learned Prof. Wakker’s view on decision theory, and this strongly shaped my personal understanding of many decision-theoretical problems.

I cherish this groundbreaking book because it clarified to me the role of State bureaucracy behind various social phenomena, among which are: the connection between bureaucrats' power and violent behavior and the profound impact of State agencies on immigrants' integration processes.

The book's theoretical approach, which is based on power-dependence relations, encouraged me in analyzing the absorption of immigrants from Ethiopia (my PhD thesis) in terms of bureaucratic control rather than through cultural background and differences.

Not less important, this book was authored by the late Prof. Emanuel Marx, who was my admired supervisor and a very dear friend for over 40 years.  

This book served me greatly in teaching courses on education and social stratification in Israel.

Its ethnography is fascinating and although it was published some 55 years ago its insights are still compelling and relevant. The book exposes the veiled bureaucratic interests which pull the strings behind the curtains of the educational system rather than ideals of justice and equity.

This critical analysis influenced my understanding with regard to the emergence of discrimination and racism that were the outcomes of concentrating Ethiopian children in separate classes for a long time.    

Another classic, Understanding Forests is the finest all-around narrative explaining the values of forests and the nuts and bolts of their management, their mismanagement, the bureaucracies of forestry and how they function, the needed reforms, and the political strides that must be taken, both twenty-five years ago and now. In one or two sittings a forest advocate can graduate from knowing very little to having an effective grasp of what we need to do for better care of our forests.  

The thing I love about this book is that it illustrates how difficult the jobs of street-level bureaucrats (i.e., public servants working directly with the public at the street level) are.

Being a cop, teacher, social worker, etc. is a lot more complex than what it looks like from the outside because it’s not just about helping citizens; it’s also about navigating all the rules and policies that govern how public services are delivered.

It’s impossible to read this book and not walk away with a respect for how hard those jobs are.

Covey’s book unlocks the nature of Trust and its critical value in life and leadership.

He explains that trust is about confidence in a person or relationship. To be trusted we need to be credible and he illuminates the four cores of credibility in two categories – our confidence in someone’s Character and our confidence in their Competence. The two core attributes of Character are Integrity and Intent. The two core attributes of Competence are Results and Credibility.

This clear explanation, and some of Covey’s diagnostics, have been very helpful to me in really understanding the notion of Trust and then working with executive to enable them to build greater trust and vulnerability with each other. Trust is the bedrock of great teams and great relationships. 

Humanocracy addresses perhaps the biggest opportunity for value creation at scale, i.e., transitioning large command-and-control corporations to flatter organizations.

What I like most is the combination of rigorous thinking, plain language, and company stories illustrating the worldwide movement to purge bureaucracy. I have personally studied one of the companies spotlighted, the preeminent steel manufacturer Nucor. Four layers of management from the CEO to those working in the steel plants.

The authors understand what makes Nucor excel (page 82): “True to the spirit of humanocracy, Nucor’s model isn’t about pushing employees to do more, but giving them the opportunity to be more—more than blue collar workers, more than order takers, more than mere operators, more than employees… every job can be a good job.”