Cognitively Yours

  Raja R,  Author "W e do want to project ourselves as very honest persons and wonderful human beings, while on the other hand we do want to benefit from cheating to the level it does not affect our image as an honest person " People like to think of themselves as honest. However, dishonesty pays and it often pays well. How do people resolve this conflict? This research shows that people behave dishonestly enough to profit but honestly enough to delude themselves of  their own integrity. A little bit of dishonesty gives a taste of profit without spoiling a positive self-view. Treachery can be rewarding, as punishment for the treacherous in the real world is neither swift nor sure. Is dishonesty an outcome of cost benefit analysis Imagine a team battling to save the match. They indulge in time delaying tactics. The thought process of this decision has been based on weighting the conceivable cost - being fined for slow over rate -against the benefit of saving the match from...

Raja R,  Author " Skepticism is not believing what you’re told or what “everyone” considers true; it’s one of the most important requirements for successful investing. " The Seduction of Pessimism With the outbreak of pandemic, March 2020 saw the market tumble to new lows. There were self-styled advisors who predicted further doom and convinced many to exit the market and enter at a much lower level. True, there were saner voices which advised people to maintain composure but were being labelled as those with a “self-serving bias.”. True, there is no denying the fact that it was a crisis never seen before and was destined to cripple the economy. Was the pessimism justifiable? With hindsight, definitely no. But, even without hindsight, we could say that while many extrapolated the crisis, few anticipated what the World will do to combat the unprecedented crisis - economically, politically and medically. Optimism sounds like a sales pitch. Pessimism sounds like someone trying t...

  Raja R,  Author " When we do plan for an investment, we always scout for opportunities which maximises our returns rather than be contented with those which help us achieve our financial goals comfortably. " Once upon a time, there lived a King who, despite his luxurious lifestyle, was neither happy nor content. One day, the King came upon a servant who was singing happily while he worked. This fascinated the King, why was he, the Supreme Ruler of the Land, unhappy and gloomy, while a lowly servant had so much joy. The King asked the servant, “Why are you so happy?” The man replied, “Your Majesty, I am nothing but a servant, but my family and I don’t need too much, just a roof over our heads and warm food to fill our tummies.” The king was not satisfied with that reply. Later in the day, he sought the advice of his most trusted advisor. After hearing the King’s woes and the servant’s story, the advisor said, “Your Majesty, I believe that the servant has not been ma...

Raja R,  Author " FREE if deployed properly can be counter-intuitive and can have a great deal of power and it makes sense " We have come across instances when something is given free - a sachet of filter coffee powder when one does not have a coffee filter or brewing machine at home, a soap which we do not use, many dishes in a buffet which prompts us to pile the items liberally on our plate, though our stomach is full, the calendars and diaries which we receive during the New Year. Getting free makes us very good. Zero is not a price. It is an emotional hot button and a source of irrational excitement - Dan Ariely. Would we buy something, if it were discounted from Rs 100 to Rs 20? May be. Would we buy something if it were discounted from Rs 100 to Rs 5? May be. Would we buy if it were discounted from Rs 100 to zero? The answer is obvious. What makes the zero cost so irresistible? Free makes us purchase things that we would have never considered purchasing. We stand in queu...