Michael Shermer discusses his book The Mind of the Market as part of the Authors @ Google series.

How did we evolve from ancient hunter-gatherers to modern consumer-traders? Why are people so irrational when it comes to money and business? Dr. Michael Shermer argues that evolution provides an answer to both of these questions through the new science of evolutionary economics. Drawing on research from neuroeconomics, Shermer explores what brain scans reveal about bargaining, snap purchases, and how trust is established in business. Utilizing experiments in behavioral economics, Shermer shows why people hang on to losing stocks and failing companies, (continue reading…)

During his book tour Michael Shermer visited the offices of Reason magazine, who have recently added Reason.TV to their media package, a project helped launched by Drew Carey, who turns out to be a big fan of Skeptic magazine and all things skeptical. In this interview Reason magazine editor Nick Gillespie interviews Shermer on his new book, The Mind of the Market.

Two new sciences shed light on an old problem of financial risk

With the stock market off to its worst first week of the year in history, investors are scrambling to decide whether or not to get out of the market. In my new book, The Mind of the Market, I describe the problem this way: our decisions about buying or selling things we value are heavily weighted by three psychological phenomena: the endowment effect, the sunk cost fallacy, and loss aversion. Understanding these will help you decide what to do with your investments. (continue reading…)

Michael Shermer read from and talked about his new book, The Mind of the Market, at various venues during his book tour in January 2008. Shermer discussed how economic and evolutionary theory speak the same language, and how our hardwired human biology affects modern economics. READ MORE about the book

National Capital Area Skeptics, Arlington, VA (January 12th, 2008)

LISTEN to part 1 (audio podcast)
LISTEN to part 2 (audio podcast)

The new science of evolutionary economics explains why some candidates, like some products, get ahead in the marketplace

As the presidential candidates bounce from primary to primary, with some surging and others falling back, it is appropriate to ask if there is something going on here more than simply political preferences and perceived positions on issues. There is. In my latest book, The Mind of the Market, I discuss a phenomenon called the Matthew Effect. It is a disturbing disruption of what we think of as democratic fairness. Here’s how it works. (continue reading…)