In Misbehaving by Richard Thaler, he says that economics is a discipline that studies fictional creatures (humans) who are perfect at calculating with no emotions. Misbehaving is a book about how psychology and the human element effects economics. Richard Thayer is a pretty funny guy and hearing his explanation of how humans don’t act in accordance with optimal economic behavior was a fun experience.
The one example I liked the most is the comparison of 1st round draft picks to 2nd round draft picks in the NFL. As it turns out, 2nd Round draft picks are at least 5 times more valuable to the team over time, because the way you win in the NFL is by underpaying players that overperform. 1st Round draft picks are very expensive and usually don’t perform as well as the team had hoped.
It comes as no surprise that the New England Patriots are the best at this exercise over time. As if Boston Sports needed another win, but now they’re winning on the field of behavioral economics as well. By comparison, the Washington Redskins are not quite as good at this—as shown during the decision to trade multiple first round picks for RGIII.
Behavioral Science is one of the drivers behind my obsession with CPaaS. The Clique mission to help businesses communicate more efficiently is initially expressed by the Clique API platform which, above all other things, has to be reliable, scalable, and efficient.
From there, our Labs team adds a layer of opportunity—through some form of transcription, translation, or sentiment analysis—to make some decisions. Depending on what sort of information you want to extract out of the conversation, we can aid in the improvement of communication.
The reason I liked the book as much as I did is because of the similarities between the imperfect worlds of real-time communication and economics. The vision for Clique is to be the platform that helps humans communicate with optimal real-time information in the most efficient and effective way possible.