Mental Models: Peaking Investor Curiosity
Updated: Nov 3, 2019
Mental Models Podcast - Episode #30
The Peek Effect: It comes down to the distinctiveness of how something is described and the novelty. It is a salience type of effect, in that each individual is drawn to different factors that they will attend to. By asking for a novel amount of change while panhandling, such as 17cents versus $1, research has found that an individual is more likely to respond to a request for money if they amount is unusual. Resulting in the panhandler increasing the amount of money they collect over time. Based on research by Michael Santos, from the 90's.
The example provided in the podcast by Dan of the panhandler in London 'peaked' Dan's curiosity by changing up his style of asking for money, with an impromptu musical engagement using an orange traffic cone.
How to Listen:
How does the Peak Effect Impact Investors?
In the investing world some very distinctive feature is alerting you to a particular opportunity or something to be concerned about - Peaking your Curiosity
Base Rate Neglect Bias
Try to think in probabilities when ever possible, because there are so many statistics out there.
The Next Asbestos...Forever Chemicals
Forever Chemicals Entering our Bodies Through Food and Never Leaving. Video and further reading links below.
Video of Forever Chemicals: Great Lakes Now click here
Forever Chemicals in our Food read more: click here
If You Ask you Will Get - Peak others Curiosity
Research by Ellen Langer, Ph.D. from Harvard and the famous "Cutting the Line" experiment. How to get ahead in line, ask directly or provide excuse and raise others awareness of your need.