Something You Should Know

Why Winners Often Lose & What Great Teams Do Differently

28 snips
Oct 23, 2025
In this engaging discussion, Alex O. Imas, a Professor at the University of Chicago, delves into behavioral economics, explaining anomalies like the winner's curse and sunk-cost fallacy that lead to poor decision-making. Colin T. Fisher, an expert from University College London, shares insights on effective group dynamics, highlighting the importance of diverse teams and the pitfalls of compromise in creativity. Together, they provide practical strategies for avoiding common pitfalls and improving team performance.
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INSIGHT

Block Sensory Input To Remember Better

  • Closing your eyes or removing sensory input improves recall by reducing distractions.
  • Visual distractions impair visual memory while auditory distractions hamper recalling sounds.
INSIGHT

Why Winning Can Mean Losing

  • The winner's curse happens when the most optimistic bidder overpays relative to true value.
  • Winning can therefore systematically cause losses when others also bid and signals are noisy.
INSIGHT

Account For Others' Information In Auctions

  • Auctions require thinking about others' information and adjusting bids downward to avoid overpaying.
  • Many bidders fail to account for strategic competition and so repeatedly overbid.
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