Decision Making and Negotiation

Anchoring - the right way to start
BATNA - Best Alternative to the Negotiated Agreement. What happens if you don't come to an agreement. Let me be clear what are my benefits and costs of negotiations.
Emotions - could be in favor/against you. What emotions do you want there to be?

When fighting, at the end one of the two will one. But the longer the fighting goes on, both parties lose more, in the sense that both are miserable. So the earlier the parties can agree on who's going to win, the less both parties will suffer.

"Yes Dear" is a good thing to say.

If you reward people for behavior that they're intrinsically motivated to do, after a while, the reward takes the place of the intrinsic motivation, and people aren't intrinsically motivated.

So, don't get rewarded in money for stuff you love doing. Just don't do it for the money.

Principle of Loss Aversion

People hate losing more than they love gaining.

So if I want to enforce people to behave a certain way, fining them for undesirable behavior will be more effective than rewarding them for desirable behavior.

So, punishment is more effective than rewards.

But what happens when you take them away? In which case, does the behavior continue?

In case of punishments, the behavior resumes to what it was. In case of rewards, the newly learned behavior goes on.

So, while present, punishment maybe more effective than reward. But if you want the behavior to continue, you should reward.

source: I am taking this Irrational behavior course on coursera.org taught by Dan Ariely from Duke, so all these psych posts in the next few days will be from there.

Dog Poop Problem

Two kinds of signs for a rule: 

1. The sign board that says we shouldn't do it. 

2. The clues that everybody else is doing it. 

Which one would you follow? The second is Most important. 

Okay. So How we do we go from one situation where one thing we're trying to curb is the accepted norm?

First - there's never a good day to enforce (regulate) it. There's no smooth transition. There's has to be a quick transformation. So, announce a day that the change is going to occur. Have people subscribe to it, so they all have agreed to it. Then start using huge fines to start curbing it that day. 

source: https://class.coursera.org/behavioralecon-002/lecture/135

Tonight I am happy because I am sad for you.

The Planning Fallacy

Whenever you're planning for some activity, try estimating it will take you twice as long, and then it might get done on time.

Few things I learned

That I am slowly losing...

1. Not indulging in gheebat. Not even letting the general conversation go in that direction. Not only not doing it, but not even letting it happen.

2. Being thankful about everything that happens, that is happening.

3. Seeing the good in everyone.

4. Not seeing the bad in everyone. There's good and bad in Everyone, so you can see bad if you set your mind to it. You have to train yourself to not see it. I had started doing it. Now I am seeing bad in others once again.

5. Remembering Allah when I feel lonely, so never feeling lonely. Losing this one slowly too.

6. Being comfortable with being by myself. Now I seem to require company.

7. Reading. Haven't read anything in a long time.

8. Writing. This one's kinda obvious, to you guys at least? No? Well, actually not. I have private blogs, that are now gathering dust. So yeah.