Analysis Paralysis

Source video: Analysis Paralysis Is Holding You Back - YouTube

This is something that I've wanted to do for a while, and I'm experimenting with the format.

Notes Summary

01:42 - Neuro-Economics
1. Neuro-economics is an emerging field
  1. We don't know a ton, but we're learning more every year
  2. Mix of neurology/neuroscience, economics, and traditional psychology/psychotherapy
    3. Neurology: How the brain physically works, but not typically relevant to human behavior
    4. Economics: How humans make choices
    5. Psychology: Study of human behavior from a psyche perspective
  3. Neuro-economics gives us a clear insight into how the brain makes decisions
2. Loss aversion is directly connected to paralysis analysis
  1. Parts of the brain weigh the consequences heavily, and impact decision making
    1. These parts of the brain are making incorrect/disconnected decisions
  2. Our fear of consequences, unrelated to how realistic they are, inhibit decision making
03:29 - The circuitry of loss aversion
1. First; some anatomy
  1. Ventral Tegmental Area^[1]
    1. Dopaminergic part of the brain
    2. Part of the brain that tells us to "do it"
      1. Motivation
      2. Reward
      3. Behavioral reinforcement
  2. Amygdala^[2]/Limbic System^[3]
    1. Noradrenergic
    2. Part of the brain that "plays a pivotal role in... fear"^[4]
      1. Fear
      2. Losses
2. Decision making equation
  1. Motivation comes from the VTA, and Fear/Caution comes from Amygdala
    1. If something in the equation goes wrong, then a decision is not made
    2. Often if we don't have enough information
  2. HOWEVER, the Amygdala is disconnected from reality
    1. If we can reign in the Amygdala, then we can make a decision
    2. "... what if something goes wrong?"
06:46 - Experimenting with neuro-economics
1. If I could reduce or eliminate the chance of something going wrong, would I do it?
  1. If the answer is yes, then there's an experiment you can do
2. Thought experiment 1
  1. $5 in cash and an object worth $5 are not equivalent in your mind
    1. $5 has a range of possibilities
      1. Could buy a book, could get a coffee, etc.
    2. The thing worth $5 has only 1 use
      1. The range of possibilities is extremely limited
  2. Experiment: Consider selling the object
    1. Suddenly, the object seems more valuable
      1. If I sold the coffee mug, I wouldn't be able to do all these things with it^[5]
      2. The longer you own the object, the more it feels valuable to you
    2. Owning the object seems more valuable than $5 you would get for it
    3. That which you own feels more valuable than something else.
      1. The longer you spend in a pattern or behavior, the harder it is to give up
3. Thought experiment 2
  1. You're in a 2/10 relationship
    1. You look at the rest of the world, and you see a lot of people you feel you could have a 5/10 relationship
    2. Your brain amplifies the value of your relationship 2-3 times, and more the longer you've been in it
11:32 - Temporal bias
16:33 - Order of Operations
19:23 - Intermixed Losses
22:49 - “The third thing”
26:12 - Brain calculations not based in reality
31:39 - Conclusion