Incentives

Munger's observation that incentives do more than tempt - they quietly reshape what people sincerely believe, which is why the broker recommending the churn would pass a polygraph. The move is to audit the payoff structure behind every recommendation, forecast and fee before weighing its content. Sincerity is no defence; read the compensation tables the way others read the CEO letter.

13 books · 3 people behind it · 4 resources

Start here

FreakonomicsSteven D. Levitt, Stephen J. Dubner, 2005
Poor Charlie's AlmanackCharles T. Munger, Peter D. Kaufman, 2005
The OutsidersWilliam N. Thorndike, 2012

The people behind it 3

Each person holds a book in this entry or names it in their own tags.

Academics 2

Nassim Nicholas Taleb1 book here

Dan Arielynamed in their tags

Journalists 1

Peter Bevelin1 book here

Resources 4

Bias from Incentives and ReinforcementShane Parrish · essay · Munger's claim that incentives reshape sincere belief.
The Psychology of Human Misjudgment (transcript)Charlie Munger · talk · Munger's twenty-five standard causes of human misjudgment.
Creating Effective Incentive SystemsShane Parrish · essay · Nucor's Ken Iverson on incentives that actually worked.
A Look Under the HoodHoward Marks · memo · How an institution's incentives shape its portfolio.

Books 13

T1 Freakonomics

Steven D. Levitt, Stephen J. Dubner · 2005

Mohnish Pabrai Andrew Lokenauth Ev Williams James Altucher Raoul Pal Ruslan Kogan Simon Sinek Steph Smith

T1 The Outsiders

William N. Thorndike · 2012

Andrew Wilkinson Dan Loeb Francois Rochon Mohnish Pabrai Rational Capital Investment Fund Wally Weitz Warren Buffett Alfred Lin Brian Armstrong Charlie Munger Michael Mauboussin Patrick O'Shaughnessy Ryan Hoover

Robert M. Sapolsky · 2017 · Biology of human behaviour across timescales, from neurons to culture

Andrew Wilkinson Bill Gates Bryan Johnson Jackie Vullinghs Marc Andreessen Michael Mauboussin Vinod Khosla

Economics, Organization and Management

T2 Economics, Organization and Management

Paul Milgrom, John Roberts · 1992

unverified

The Moral Animal

T2 The Moral Animal

Robert Wright · 1994 · Evolutionary psychology as an account of motive and reciprocity

Ryan Holiday Morgan Housel Reid Hoffman Tom Bilyeu

Seeking Wisdom: From Darwin to Munger

T2 Seeking Wisdom: From Darwin to Munger

Peter Bevelin · 2003

Andrew Wilkinson Nat Eliason Warren Buffett Charlie Munger David Cancel Eric Jorgenson Jason Fried Li Lu Nassim Nicholas Taleb Shane Parrish

Daniel H. Pink · 2009 · Autonomy, mastery and purpose against pay-for-performance assumptions

Michael Mauboussin Mohnish Pabrai Alfred Lin Nir Eyal Tobi Lütke

SuperFreakonomics

T2 SuperFreakonomics

Steven D. Levitt, Stephen J. Dubner · 2009 · Sequel applying incentive analysis to climate, crime and altruism

Bill Gates Mohnish Pabrai

Skin in the Game

T2 Skin in the Game

Nassim Nicholas Taleb · 2018

Nat Eliason Ana Fabrega Ben Horowitz Changpeng Zhao Chris Dixon Codie Sanchez Daniel Kahneman Jordan Hughes Keith Rabois Marc Andreessen Matt Mullenweg Naval Ravikant Peter Mallouk Sahil Lavingia

Explaining Social Behavior

T3 Explaining Social Behavior

Jon Elster · 2007 · Elster on mechanisms rather than laws in the social sciences

Mohnish Pabrai Nassim Nicholas Taleb

The Myth of the Rational Voter

T3 The Myth of the Rational Voter

Bryan Caplan · 2007 · Systematic voter bias about economics, and why democracies choose badly

Marc Andreessen

Gang Leader for a Day

T3 Gang Leader for a Day

Sudhir Venkatesh · 2008 · Sociologist embedded with a gang; an informal economy's incentive structure

Mohnish Pabrai Mark Zuckerberg