Thinking, Fast and Slow, by Daniel Kahneman
A layman’s account of the science behind Blink and Freakonomics, straight from the source.
To understand how smart people can make boneheaded moves (e.g., the Philadelphia Eagles dumping backup QB Kevin Kolb to make room for their “Dream Team” backfield), simply consult Kahneman’s treatise on decision-making. As the Nobel Prize–winning psychologist explains in wonderfully readable English, most of our problems can be traced to severe overconfidence and a tendency to exaggerate our own capacity to shape the future. Perhaps Wall Street should read and take notes: Michael Lewis calls Kahneman’s tome “an antidote to all kinds of nonsense in business and finance.”