Recognize and counteract the bias of loss aversion, where you avoid options framed as losses even if the objective outcome is the same as a gain. This bias can lead to irrational choices, such as switching your risk preference based on arbitrary framing.
Recognize the endowment effect, a bias where you overvalue things you own. This can prevent rational exchange and lead to holding onto items even when offered objectively more valuable alternatives.
Challenge the common human bias that more expensive things are inherently better; evaluate products based on their objective value and quality rather than price alone, as perceived price can irrationally influence your subjective experience and even brain’s reward areas.
Guard against ‘over-imitation,’ especially when learning from others, as slavishly copying actions (even inefficient or unnecessary ones) can prevent you from finding simpler or better solutions and limit your own exploration.
Actively develop mechanisms to critically evaluate information received from other humans, as our natural inclination, stemming from our strong sharing impulse, is to over-believe and accept information without sufficient scrutiny.
Cultivate the uniquely human ability not just to recognize that others have different perspectives, but to actively simulate what those specific beliefs are, even if they are false. This deeper understanding is crucial for empathy, social interaction, and comprehending complex narratives.
Seek to understand your own behavioral quirks and cognitive biases, as revealed by comparative studies with animals, to make better, more rational decisions in various aspects of life, especially economic ones.
Understand that many of our economic decision-making strategies are ancient, evolved mechanisms for foraging and survival, not solely for modern money use. Be aware that these strategies, while potentially useful in evolutionary contexts, can lead to ‘quirky’ or irrational behavior in modern complex systems like stock markets.
Shop rationally by maximizing value (e.g., buying more food for the same price) and consistently choosing preferred items, as even monkeys demonstrate this basic economic rationality.
Be aware that the perception of unfairness (getting a ‘raw deal’ compared to others) can lead to rejecting offers, even if it means reducing your own resources, highlighting a deep-seated social comparison mechanism.
Cultivate the uniquely human impulse to share your thoughts, feelings, and perspectives with others, as this is a fundamental aspect of human connection, learning, and the development of complex culture.
Study human infants to understand innate cognitive capacities (e.g., basic math skills) that exist without much experience or formal training, providing insight into the ’nature’ aspect of human cognition.
Understand that a relatively egalitarian social structure is necessary for a species to effectively use a money-based economy, as strict dominance hierarchies can undermine individual wealth and rational exchange.