Random Book Reviews #1
This past week, I completed reading four books. Here are a few* interesting takeaways I got from each book.
Predictably Irrational by Dan Ariely
We operate comfortably in market or social norms when they are exclusive but we have difficulty when they are mixed. It is perfectly appropriate to gift someone a nice bottle of wine for inviting you over for dinner but what if you just wrote them a check of equivalent value? Feels awkward.
We are very subjective with how we determine value. You’ve probably heard of anchoring in psychology but arbitrary coherence is the mechanism that makes such a phenomenon function. Arbitrary coherence is attributing and rationalizing value through the relative perception of value (initial prices shape how we perceive future prices and value). Item A has more value than Item B because Item B has less value than Item A.
The Tao Te Ching by Lao Tzu
I need to re-read this one… This was a tough read.
Creative Confidence by Tom Kelly & Dave Kelly
Human-centered design involves reframing problems and solutions to focus on the end-user of a product or program. Company XYZ wants to improve the wait times for their customers. What should they do? If the only possible solution is to improve actual wait time, then the solutions might be limited. Perhaps an alternative could be to reduce perceived wait time? Reframe not just the problem but also the solution.
Blockbusters by Anita Elberse
Despite the traditional advice to diversify holdings in one’s portfolio (finance), such a strategy may be ill-advised in the entertainment industry. Studios tend to invest a majority of their resources in a few of their produced films in what is described as a blockbuster strategy (think: Pareto’s optimality). Studios produce huge gains on a few properties that cover the costs of the many smaller productions and create an overall profit for the entertainment firm (most of the time).
Common intuition about websites like Netflix and Youtube is that such mediums will allow for more niche content to be produced and consumed. The opposite effect is actually occurring as consumers concentrate more heavily around blockbuster hits as opposed to the niche content available on such platforms (You sign up for Netflix for the ability to access thousands of titles but end up watching the few that everyone else is watching). Consumers, in theory, should be consuming more from the long tail but in reality are actually reinforcing the strength of the head/center (think: distribution curve).
*There are many more takeaways, I had from each book that I could’ve included here.
