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CEOs make mistakes due to their own psychological biases – but they also profit from the biases of others. Some exploit investors by catering to sentiment – adding “.com” to their name during the Internet bubble or entering “hot” industries to inflate their valuations.
Darwin’s Descent of Man was dominated by the theory of sexual selection, which Darwin used to explain peacock’s tails, but also to argue that white people were as superior to black ones as men were to women.
We often think that leaders are particularly strong in decision making – that’s why they’ve made it to the top. But evidence shows that even senior executives are prone to psychological biases, such as overconfidence, groupthink, and applying one-size-fits-all rules.
Mata Hari was an erotic dancer who, in 1917, was executed by the French army for treason. She has been portrayed as the ultimate femme fatale, extracting information from hapless men through exploiting her sensual charms.
Despite the controversy, evolution was widely accepted by many naturalists within a few years of the Origin’s appearance. An important reason for this rapid triumph was Darwin’s botanical works. Seen through evolutionary eyes, plants proved to be mobile, carnivorous, sensitive – even crafty.
When Darwin finally published the On the Origin of Species, he tried to avoid controversy by ignoring human origins. Yet evolution was soon being attacked as the godless ‘monkey theory’.
Psychological studies show that humans overweight tangible factors and underweight intangible ones when making decisions. This talk shows how these biases affect the stock market – it focuses excessively on short-term profit, but ignores environmental, social and governance (ESG) factors.
Following the Beagle voyage, Darwin settled down to a quiet married life, relying on correspondence to gather facts. He wrote thousands of letters as he gathered facts to support his still-secret theory.