The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics Melina Palmer

In episode 403 of The Brainy Business podcast, neuroscientist and physicist Kelly Clancy, through her extensive experience at MIT, Berkeley University College London, and DeepMind, provides a profound exploration of the psychology of games and their influence on behavior and decision-making. Kelly's expertise in neuroscience and game design is evident as she connects concepts from these fields to offer a comprehensive understanding of the topic. Her book, Playing with Reality, delves deep into the history and significance of games, emphasizing their role in shaping human behavior and thought processes. 
Throughout the conversation, Kelly highlights the impact of games in shaping behaviors, the significance of balancing innovation with maintenance, and the power of experiential games in fostering empathy and understanding. She presents valuable insights into the role of games in shaping economic concepts, fostering understanding, tolerance, and better conversations, and the strategic and innovative aspects of game design for creating new systems and marketplaces. 
Kelly's examples and anecdotes effectively illustrate the broader implications of gaming in various contexts, making it clear that games are not just about entertainment but can also have profound effects on decision-making and societal dynamics. Kelly's expertise and passion for the subject shine through, making the episode an engaging and informative exploration of the psychology of gaming.
In this episode, you will be able to:
Explore the profound influence of games on human culture and societal norms. Understand the intersection of neuroscience and artificial intelligence in shaping game design and player experience. Discover the application of behavioral economics in driving strategic decision-making and consumer behavior within businesses. Trace the historical significance of games and their impact on modern thought and innovation. Learn the art of designing effective incentive systems to drive organizational performance and foster innovation. Show Notes: 00:00:00 - Introduction
Melina introduces Kelly Clancy, author of Playing with Reality, and sets the stage for a conversation about the history and impact of games on society.

00:02:30 - Kelly's Background and Interest in Games
Kelly shares her background as a neuroscientist and physicist and her interest in the history of games, which stems from her work at DeepMind and her observations of how games influence scientific thought.

00:05:51 - Definition of Games
Kelly defines games as systems with a goal and restrictions on how to achieve that goal, highlighting the importance of following rules and how games have been influential in shaping behavior and learning.

00:09:00 - Influence of Games on Behavior and Dopamine System
Kelly discusses how games can shape behavior through the manipulation of the dopamine system, leading to behaviors that may not align with personal values, and the potential dangers of games encouraging individuals to abandon their values to win.

00:13:38 - Designing Systems and Mechanism Design
Kelly explores the concept of mechanism design and the importance of thinking at a systems level, drawing parallels between game design and designing systems to elicit specific behaviors, with examples from the tech industry.

00:16:25 - Designing Games for Honesty
Kelly discusses the goal of designing games where everyone can win by being honest. The importance of incentivizing the right behaviors within organizations is highlighted.

00:17:54 - Incentivizing Different Strategies
Kelly suggests incentivizing different personality types within organizations to balance innovation with maintenance work. She emphasizes the need to reward solid, clever work alongside innovation.

00:21:31 - Sports and Games
The guest discusses the historical significance of sports as a physical conditioning for conflict resolution. She explores the idea of trying on different personali

In episode 402 of The Brainy Business podcast, Annie Duke, a former professional poker player and author of the book Quit, joins host Melina Palmer to discuss the psychology of quitting and decision-making under uncertainty. Annie's transition from an academic to a professional poker player and her subsequent work in decision science provide a unique and valuable perspective on the topic. Throughout the conversation, Annie challenges traditional perceptions of quitting and emphasizes its crucial role in winning and strategic decision-making. 
She introduces concepts such as pre-mortems and the mental model of monkeys and pedestals, offering practical tools and frameworks for making better decisions. The episode provides valuable insights into reframing the mindset around quitting, the importance of understanding when to quit, and the potential impact of decision education in various domains. Annie Duke's diverse background and expertise in decision science make this episode a must-listen for entrepreneurs and business owners seeking to enhance their strategic decision-making skills and achieve increased business success.
In this episode:
Discover the strategic benefits of quitting in business to unlock new opportunities and growth potential. Implement behavioral economics in your business to enhance decision-making and drive better outcomes. Learn how to strategically identify when to quit for long-term business success and resilience. Explore the Monkeys and Pedestals decision-making model for insightful strategies to improve decision-making processes. Overcome analysis paralysis and make decisive, effective decisions to propel your business forward. Show Notes: 00:00:00 - Introduction
The episode introduces Annie Duke and her book Quit about the psychology of quitting and decision-making.

00:01:15 - The Importance of Quitting
Annie explains how winners often say no and quit things to succeed, emphasizing the need to know what to stick with, what to quit, and when.

00:04:47 - Annie's Background and Transition
Annie shares her journey from academia to professional poker and behavioral psychology, highlighting how her poker career led her back to her cognitive science roots.

00:08:40 - The Power of Diverse Perspectives
Annie discusses the value of diverse experiences in decision-making and problem-solving, emphasizing the importance of different frames of thinking to bring unique insights to the table.

00:12:05 - The Pre Mortem Skepticism
Annie shares her research on pre-mortems, expressing skepticism about their effectiveness as standalone decision tools and the need to combine them with other strategies for improving decision quality.

00:14:18 - Normalize Dissent and Prospective Hindsight
Daniel Kahneman's advice on normalizing dissent allows for consideration of both good and bad outcomes. Prospective hindsight can generate 30% more reasons for failure or success.

00:15:19 - Pre Parade and Pre Mortem Tools
Pre-mortem exercises influence confidence and introduce self-serving bias. The pre parade increases overconfidence, while the pre-mortem leads to attributing bad outcomes to external factors.

00:18:43 - Challenges in Behavior Change
Difficulty in getting people to change plans despite pre-mortem insights. Anecdotal observations and studies show resistance to plan modifications across various domains, raising questions about the effectiveness of the exercise.

00:19:55 - Group Dynamics and Real-world Impact
Need for group testing of pre-mortems to understand the impact of group dynamics. Potential for behavior change in high-stakes environments like work projects. Studies underway to explore these aspects in real-world scenarios.

00:22:23 - Thinking in Bets and How to Decide
Annie's books Thinking in Bets and How to Decide explore decision-making under uncertainty. They provide practical tools and insights, such as pre-mortems, to improve decision accuracy and overcome cognitive

On this episode of The Brainy Business podcast, host Melina Palmer welcomes Dr. Dan Simons and Dr. Christopher Chabris, the renowned authors behind the bestseller The Invisible Gorilla. They dive deep into their groundbreaking research on inattentional blindness and how everyday cognitive habits can render us vulnerable to deception. Through engaging stories and revelatory insights, the duo discusses the dark side of our mental shortcuts and how scammers exploit them in art frauds, financial scams, and beyond. 
With a focus on their new book, Nobody’s Fool, they offer strategies to recognize and resist deceptive tactics that prey on precision, familiarity, and efficiency in our thinking. Prepare to uncover the invisible gorillas in your life and sharpen your mental defenses against frauds. Tune in to rethink how you perceive reality and protect yourself from being misled.
In this episode:
Recognize the Impact of Inattentional Blindness on Decision-Making Employ Strategies to Avoid Deception in Business Apply Cognitive Psychology to Improve Marketing Efforts Understand the Psychology Behind Consumer Purchasing Behavior Show Notes: 00:00:00 - Introduction
The episode begins with the introduction of the guests, Dr. Dan Simons and Dr. Christopher Chabris. They discuss their collaboration and the unexpected viral success of the study, which led to further research and applications in various fields.

00:04:08 - The Mismatch Between Perception and Intuition
Dan and Christopher delve into the significance of The Invisible Gorilla, emphasizing the mismatch between what people actually notice and what they think they will notice. This mismatch highlights the limitations of human intuition and has broad implications for decision-making and behavior.

00:09:21 - Inattentional Blindness and Focus
The guests explain that the failure to notice the gorilla is a consequence of our ability to focus attention and ignore distractions. They discuss how this phenomenon extends beyond visual attention and can lead to dangerous or problematic behaviors due to people's reliance on intuitive understanding.

00:11:21 - Unintended Consequences and Viral Impact
Dan and Christopher reflect on the unexpected viral impact of their study and the idiosyncratic elements that captured people's imaginations. They acknowledge the role of luck and timing in the study's success and share their continued fondness for the gorilla-related work.

00:14:05 - Inattentional Blindness in Medical Contexts
Dan and Christopher discuss the limited research on inattentional blindness in medical contexts, using controlled computer-based displays to understand the mechanism of noticing unexpected things.

00:15:26 - Can You Tell If Someone Is Watching You?
Dan and Christopher talk about the common belief that people can tell if someone is watching them, despite the lack of evidence for it. They highlight how experiences can mislead us in forming intuitions.

00:16:43 - Misleading Experiences and Intuitions
They discuss how experiences can mislead us, using the example of someone catching another person staring at them. They explain how remarkable events stick in our memory, leading to spurious relationships.

00:20:07 - Deception and Attention
The conversation delves into how deception takes advantage of our cognitive tendencies, especially our ability to focus on what we care about. They emphasize the importance of asking good questions and seeking complete answers to avoid being deceived.

00:25:24 - Efficiency and Deception
Dan and Christopher highlight how our efficiency in processing information can lead to oversight, emphasizing the need to slow down and critically evaluate the information presented. They discuss the importance of questioning and examining jargon and impressive-sounding claims.

00:27:05 - Efficiency and Decision Making
The efficiency of our mental habits can sometimes hinder good decision making. While most of the tim

Welcome to the 400th episode of The Brainy Business podcast! In this milestone episode, Melina Palmer delves into the intriguing concept of survivorship bias, a critical thinking error that can significantly impact decision-making in business and personal life. Through engaging storytelling, Melina takes us back to World War II to uncover the origins of this concept and how it played a crucial role in military strategy. 
She then brings the concept into contemporary contexts, illustrating how survivorship bias leads us to overvalue success stories while ignoring the vital lessons from failures. This episode not only celebrates our podcast’s journey but also equips you with practical insights to recognize and overcome survivorship bias in your ventures. Join Melina as she explores this bias’s profound implications on entrepreneurship, business strategies, and everyday decisions, helping you make more informed choices. 
In this episode:
Understand how survivorship bias impacts business success and decision-making. Explore the powerful influence of behavioral economics on shaping strategic choices in business. Discover effective strategies to overcome survivorship bias and drive more informed decision-making. Differentiate between correlation and causation in business strategies to make more impactful choices. Uncover the success factors that extend beyond survivorship bias and drive sustained business growth. Show Notes: 00:00:00 - Introduction
Melina introduces the concept of survivorship bias and its relevance to business decisions. She emphasizes the impact of this bias on entrepreneurs and its influence on decision-making in various roles across industries.

00:04:08 - Abraham Wald and World War Two
Melina delves into the story of Abraham Wald, a mathematician who discovered survivorship bias during World War Two. She highlights the significance of Wald's analysis of bullet holes on planes and the crucial insights it provided on reinforcing strategic spots.

00:09:16 - The Fallacy of Survivorship Bias
The discussion focuses on the fallacy of survivorship bias in seeking advice for success. Melina provides examples of how survivorship bias leads to misconceptions about causation and correlation, using narratives of successful individuals as illustrations.

00:11:31 - Business Applications of Survivorship Bias
Melina explores the business applications of survivorship bias and its implications for decision-making. She emphasizes the complexity of success and the dangers of assuming a one-size-fits-all approach based on survivorship bias.

00:13:56 - Correlation vs. Causation
The conversation delves into the distinction between correlation and causation, highlighting the misconceptions that arise from survivorship bias. Melina illustrates the importance of discerning causation for making informed decisions in business and life.

00:15:46 - Survivorship Bias in Conclusions
Not all successful CEOs wake up at 05:00 a.m. Correlation doesn't imply causation. It's important to consider all data points and not draw conclusions based on one aspect.

00:16:21 - Success and Failure in Publishing
For every popular book, there are a million unsuccessful books and authors. It takes trial and error and hard work to succeed. Learn from others' experiences and determine what works for your goals.

00:18:07 - The Illusion of the Best Product
The best products don't always lead the market. Being the best or first doesn't guarantee success. Look at all possible data points and consider what's missing for your business venture.

00:19:55 - Customer Feedback and Satisfaction
Customer satisfaction surveys may not capture all feedback. Consider the concerns of those who didn't choose your business. Look beyond extreme examples and aim for a complete data set for feedback.

00:23:49 - Openness to Unexpected Findings
Be open to the things you aren't looking for. Anomalies and unconventional ideas could lead to v

In this insightful episode of The Brainy Business podcast, host Melina Palmer welcomes Max Mawby, a seasoned expert in applied behavioral science at Thinks Insight & Strategy. Max shares his unique journey from working in the UK government to founding the financial behavior team at the Behavioral Insights Team, exploring the significant impact of behavioral science in both private and public sectors. With a focus on simplifying complex information for better consumer understanding, Max discusses his collaboration with plain numbers, a social enterprise dedicated to making numerical communications more accessible. 
Delve into practical strategies like the EAST framework to enhance decision-making processes. Max emphasizes the necessity of clear, effective communication to empower informed choices without compromising freedom. This episode is a treasure trove of insights for anyone interested in how behavioral science can drive positive financial behaviors and facilitate informed, sustainable decisions. Tune in to learn how to implement these practices in your organization and make a lasting impact. Don't miss this episode’s engaging discussion on the power of behavioral insights in real-world applications. 
In this episode:
Apply behavioral science principles to drive business success and enhance customer understanding. Influence positive financial behaviors to unlock new opportunities for financial growth and stability. Conduct online experiments to inform strategic business decisions and optimize customer experiences. Utilize behavioral insights to design inclusive products that resonate with diverse consumer needs and preferences. Simplify financial communication to empower consumers and foster better financial decision-making. Show Notes: 00:00:00 - Introduction
Max Mawby, managing director of applied behavioral science at Thinks Insight & Strategy, shares his insights on driving positive change using behavioral science in various sectors.

00:05:58 - Starting in Behavioral Science
Max shares a personal story about his early attempts to introduce behavioral science in the UK civil service. He emphasizes the importance of perseverance and finding opportunities to apply behavioral science.

00:10:30 - Experimental Projects
Max discusses a project on improving financial decision making for pensions in the UK. By using personalized guidance in a digital journey, they were able to significantly increase the number of people making good financial decisions.

00:14:46 - Behavior and Technology
Max highlights the potential of leveraging technology to provide personalized advice, reducing the need for expensive human resources. He emphasizes the importance of using empirical evidence to make an investable case for implementing behavioral science solutions.

00:16:34 - Importance of Persuasive Evidence in Experiments
Max discusses the importance of persuasive evidence in experiments, highlighting the need to understand the context and literature. He emphasizes the significance of high confidence in experiment results.

00:17:22 - Designing Experiments Based on Context
Max emphasizes the importance of understanding contextual pieces when designing experiments. He discusses the need to translate research findings to different situations and adapt methods accordingly.

00:18:30 - Structuring Problem Solving in Projects
Max explains the process of structuring problem-solving in projects, including setting a structure around the specific problem, forming research questions, and selecting appropriate methods to answer those questions.

00:22:13 - Exploring Behavioral Interventions
Max discusses the exploration of behaviorally informed interventions and projects, highlighting the importance of frameworks like EAST (Easy, Attractive, Social, Timely) for driving change and evaluating impact.

00:28:57 - Discovering New Research
Max shares his approach to discovering new research through social media platfo

In this episode of The Brainy Business podcast, host Melina Palmer welcomes Dr. Michael Hallsworth, a co-author of Behavioral Insights and a key figure in applying behavioral science to public policy. Dr. Hallsworth shares fascinating anecdotes from his extensive work, highlighting projects such as reducing antibiotic prescriptions in the UK and influencing food consumption habits to combat obesity. 
The discussion delves into the evolution of his team’s approach, tackling bigger policy issues like economic mobility and social justice with support from major foundations. Lessons from both successful and unsuccessful trials are explored, underscoring the importance of sharing outcomes to refine interventions. 
Dr. Hallsworth also touches on the nuances of replicating behavioral strategies across different countries and contexts, emphasizing the need for a deep understanding of specific problems before proposing solutions. This episode is a treasure trove for anyone interested in how small nudges can lead to significant societal shifts and is packed with real-world applications of behavioral economics.
In this episode:
Maximize Business Impact: Harness the Power of Behavioral Insights in Decision-Making. Policy Design Precision: Unleashing the Impact of Behavioral Economics in Policy Formation. Optimize Antibiotic Prescribing: Strategies for Effective and Efficient Antibiotic Use. Elevate Economic Mobility: Leveraging Behavioral Insights for Greater Social Mobility. Health Impact Strategies: Designing Effective Sugar Drinks Tax for Public Health. Show Notes: 00:00:00 - Introduction
The episode introduces Dr. Michael Hallsworth, managing director of the Behavioral Insights team, and his journey into behavioral science. He discusses the institute for government and the development of mindspace as a framework for applying behavioral science in practice.

00:06:48 - Flagship Project - Antibiotic Prescribing
Michael shares a flagship project on antibiotic prescribing in the UK. By identifying prescribers who were outliers and sending them letters based on social norms, there was a substantial decline in antibiotic prescribing, equivalent to around 1% of England's total. This approach had a comparable effect to a massive financial incentive program, showing the effectiveness of alternative methods.

00:10:33 - Generalizability of Behavioral Insights
The conversation delves into the generalizability of behavioral insights across different contexts. Michael emphasizes the complexity of generalizability, highlighting examples where similar interventions have had comparable results in different countries, while also acknowledging instances where interventions haven't worked as expected.

00:13:12 - Importance of Testing
The discussion underscores the importance of rigorous testing and questioning the transferability of behavioral insights. Michael emphasizes the need for ongoing testing and the productive tension between retaining active ingredients that work and adapting interventions to different contexts.

00:14:02 - Applying Behavioral Insights
Michael outlines a ten-step process for applying behavioral insights, emphasizing the importance of identifying the behavior in question, understanding the context, and diagnosing the underlying problem.

00:15:38 - The Behavioral Change Process
Michael explains the common stages in behavioral change frameworks, from identifying factors to developing interventions and scaling the results. He emphasizes the importance of understanding the overall context and distinguishing between strategic and tactical use of behavioral science.

00:17:26 - Policy Impact of Behavioral Science
Michael discusses the strategic and tactical use of behavioral science in influencing policy and structural changes. He shares an example of the behavioral effects of the sugar drinks tax in the UK and how it influenced reformulation rather than consumer behavior.

00:24:25 - Rapid Trials