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9.1 Using Expected Utility

This video incorporates the expected value and diversification principles into more common, everyday situations. The challenge of dealing with abstract ideas rather than quantifiable numbers when determining the highest expected value is examined. The principle of expected utility is introduced to solve this issue.

9.2 How to Quantify and Prioritize?

One of the most important factors in success and happiness is the ability to rationally set priorities. This video discusses assigning utilities in life so that we can decide what is actually important to us. While prioritizing and comparing things sound simple, many of us worry a great deal unnecessarily.

9.3 The Sunk Cost Fallacy

This video discusses loss aversion and sunk cost fallacy and presents the argument that rationally, we must only focus on future costs rather than those that have already happened. Flaws in our intuitive thinking undermine our chance of success.

9.4 Satisficing and Simplicity

This video continues the discussion of the expected utility principle and the sunk cost fallacy. Using an example of shopping, the concept of “satisficing” is introduced. People who use the strategy of satisficing tend to be happier than those who try to maximize their options.

9.5 Comparison Decisions, Halo Effects, and Quantifying

When dealing with high-stakes decisions, satisficing should be replaced by careful consideration. This video discusses thinking slowly and strategically to make the best possible choice in a risky situation. By making decisions quantitatively rather than qualitatively, our biases and flawed intuition are undermined.