Download pdf - Why we do what we do

Why�� We�� Do�� What�� We�� Do

Vikram�� Bhaskaranrand(this.thursday);

We do things we believe will make us happy

...(duh)

Actions... Not thingsIt’s not our abilities that define

who we are, but rather our choices

that doesn’t seem right...

What are the things we do...

Ability: Stuff we CAN do

Desire: Stuff we

WANT to doChoice

(Stuff we end up doing)

How much do we control what we do?

5%7%

42%

28% 10%

8%

SocialSocietalCircumstantialEnvironmentalSub consciousConscious

95% of our actions are things outside our control...

But the remaining 5% makes all the difference!

So how do we choose?

UTILITY

Utility Theorymaximize u(money, time, effort)

subject to: f(money, time, effort) = budget

Complete

Reflexive

Transivitve

Continuous

Monotonic

Diminishing rate of substitution

Choices => Preferences>=> > => >

=> =

> ~ => >>

Or more specifically

(Gains x winning - Loss x risk)Maximize gains, minimize loss

But what’s a win / lose?Gains are over ratedLosses are subconsciously tied to the riskYour win is peanuts to me

Gambler’s�� fallacy�� |�� Cognitive�� dissonance�� |�� Bounded�� rationality�� |�� Self-serving�� bias�� |�� Belief�� bias�� |�� Hindsight�� |�� Choice-supportive�� bias�� |�� Exposure�� effect�� |�� Outcome�� bias��

Plus some choices aren’t rational. Right?


What do YOU believe in?

rational egoism

graded absolutism

lesser evil

individual egoism

personal egoism

universal egoism

moral absolutism

Why is that a big deal?

your beliefs drive your world view

And that drives what we want...

Joy of failureJoy of expression

Joy of abundanceJoy of family

Joy of social welfare

Religious people are definitely happier

*but only in otherwise religious places

Rational (intelligent) people are happier

by this much


So we constantly predict... our future happiness?

So we constantly predict... our future happiness?

kinda... except we suck

What we thought 2000 would be likethis in 1910

How we predict: the crystal ball inside

Phineas�� Gage Morphy

Except our crystals are screwed.. a bit

Risk is bad. Terrible terrible bad.

To sum it up..Our brain wants to maximize happinessOur genes make sure we’re least upsetWe suck at predicting both

Luckily... That’s ok

Because we don’t know what makes us happy!!!


What is happiness? Money Things Intelligence Actions

All... and none..

Mostly... It’s your parents

50% of happiness is genetic

But you control 40%-Sonja�� Lyubomirsky(big�� ass�� psychologist)

What really makes us happy?


Pleasure - things are pretty big


Engagement - nothing like being in the flowPleasure - things are pretty big



Relationships - friends, love and society



Relationships - friends, love and societyMeaning - a grander purpose to go on



Relationships - friends, love and societyMeaning - a grander purpose to go onAccomplishments - things to be proud of

The deal is to go with the flow

Mihaly(another super smart dude)

So where does that leave us? We can’t control the things you can’t or have to do Beliefs trump rationale We WILL flex our beliefs to match our worldview (cognitive

dissonance) We suck at predictions, but that won’t stop us from trying At the end of the day, we just want to maximize our u(x...) PERMA beats genetics

If�� you�� love�� doing�� what�� you�� do...�� KUDOS

And�� that’s�� Why�� We�� Do�� What�� We�� Do

(or�� at�� least�� should�� be...)

Vikram�� Bhaskaranrand(this.thursday);