Choiceology With Dan Heath

When you set out to buy something—a car, for example, or a laptop or some small gadget for your kitchen—you analyze the features and the style and the utility of the thing, and then you make a choice. But it turns out that there’s a psychological force that can influence what you’re willing to pay. On this episode of Choiceology with Dan Heath, we examine a bias that affects how you perceive gains and losses, how you negotiate deals and the way you think about value. The episode begins with legendary sports agent Leigh Steinberg. He describes his dramatic first attempt at negotiating a high-stakes contract for a client joining the National Football League. You can read more about his experiences in the sports world in his book The Agent. You’ll hear an experiment based on Daniel Kahneman and Amos Tversky’s early studies that demonstrate the bias in real time. And lawyer, mediator, and conflict resolution expert John Curtis explains how everyone—from people selling their homes to police informants going into

Sometimes it seems as if danger lurks around every corner. News reports of events like plane crashes and shark attacks make grave risk to life and limb feel real and imminent. And while there’s no doubt that risk is a part of life, are these the types of events we should really be concerned about? On this episode of Choiceology with Dan Heath, we examine a bias that affects the way you perceive both risk and reward. We trace how this bias may have helped your ancestors avoid lions lurking in the tall grass—but may also negatively affect your decisions around things like vacations and lotteries. The episode begins with Ranie Pearce and her harrowing tale of adventure in the middle of the Pacific Ocean. Ranie Pearce is and accomplished open water swimmer and a member of the South End Rowing Club You’ll hear an experiment involving sharks—and something even more dangerous—at the Vancouver Aquarium in British Columbia. And Dan Gardner explains the psychological roots of our common misperceptions about risk and re

In a world awash in data, you’d think it would be relatively easy to make informed, objective decisions. But there’s a problem that gets in your way, even with all of this information at your fingertips: You see what you want to see. On this episode of Choiceology with Dan Heath, we look at the tendency to favor information that confirms pre-existing beliefs. The episode begins in Europe in the 16th century, with a secret debate about sainthood, and then moves to a harrowing story of crime and punishment in contemporary America. Neuroscientist Tali Sharot explains the biological roots of this bias, and how it is actually a fundamentally useful mental shortcut. Her book is called The Influential Mind. Dean Gillispie is now listed with the National Registry of Exonerations. Mark Godsey’s book on his experience advocating for Dean Gillispie is called Blind Injustice. You can find out how to fight back against the influence of this bias in your financial decisions in a bonus article on Schwab.com. Choiceology is

Imagine that you’ve put in effort toward a goal, but things haven’t quite worked out the way you hoped. Maybe your goal was more expensive than you expected; maybe it’s taking longer to reach than you thought. So the question is, do you double down and continue to work toward that increasingly difficult goal, or do you move on to something new? Do you fish or cut bait? On this episode of Choiceology with Dan Heath, we look at how past effort, time or expense can influence the way we make decisions moving forward—even when they shouldn’t. The episode begins on an auction house floor but quickly climbs to the top of the highest peak in the world. Along the way, you’ll see how common is the lure to continue no matter what, and how it affects all kinds of decisions, big and small. Professor Michael Roberto explains how to identify this bias in your day-to-day life. You can read his paper on how it may have influenced some life-and-death decisions at the top of Mount Everest. Lou Kasischke’s book on his experience

You don’t make decisions in a vacuum. Context matters, perhaps more than you think. On this episode of Choiceology with Dan Heath, we explore the subtle, sometimes hidden structures that influence your decisions. You’ll see how small changes in the way choices are presented can have a huge impact on everything from vandalism to traffic congestion to retirement savings. Tara Austin of Ogilvy Change tells the dramatic story of how she and her team worked to reduce street crime in a London neighborhood after a devastating riot. It was a surprisingly simple project that had a measurable impact. You can see images from the project in this BBC News article. You’ll also hear about an experiment we ran on a busy intersection in an attempt to reduce collisions between bicycles and pedestrians—using nothing but a roll of duct tape. And behavioral design expert Sille Krukow explains how choice architecture can channel our inherent laziness to help us make better decisions. After listening, you can read our bonus articl

The Battle of Midway. Saltine crackers. Carnival games. What do these seemingly unrelated things have in common? Well, they’re connected by a common psychological trap—one that affects the way we all make decisions. In this first episode of Choiceology with Dan Heath, we reveal this bias and explain how it affects decisions, big and small. Jonathan Parshall tells the dramatic story of how it influenced the course of history during a World War II battle. A ridiculous cracker-eating contest demonstrates the pitfalls of this bias in real time. And Professor Don A. Moore explains the history and psychology behind the bias and offers advice on how to minimize its effects. Learn more about how this bias may be affecting your investing outcomes in this article. Choiceology is an original podcast from Charles Schwab. If you enjoy the show, please leave a ⭐️⭐️⭐️⭐️⭐️ rating or review on Apple Podcasts. (0218-8W73)

You’re not as rational as you think. In this new podcast, bestselling author Dan Heath performs forensic analysis on decision making. You’ll hear real stories, learn from top experts, and witness informal experiments that demonstrate the mistakes we too often make. Subscribe for free today to get the first episode automatically when it launches February 12.