How To Not Get Taken Advantage Of
Your quality of life depends on how easily you are taken advantage of - and it's a given that lots of people will try.

The best way to prevent it from happening is to understand why it happens.
Tai Lopez May 19, 2015
Incentives. 

Give people an incentive to manipulate you and they will.

Remove the incentive and they will stop.

Most of the surprise comes when people we trust, the 'experts,' take advantage of us.


I was reading "Freakonomics" for today's Book-Of-The-Day.



I loved what the economist authors said:

"But experts are human, and humans respond to incentives. How any given expert treats you, therefore, will depend on how that expert's incentives are set up. Sometimes his incentives may work in your favor...In a medical study, it turned out that obstetricians in areas with declining birth rates are much more likely to perform cesarean-section deliveries."

So remember what the great Charlie Munger says, "Beware of perverse incentives."

To me, 'perverse' means any situation where you being worse off makes someone else (or some company) better off. 

A good example is a junk food company advertising the 'health benefits' of feeding kids sugar cereal and backing it with some biased scientific statistic like '10% more calcium.'

COMMENTS



2 Comments

really like this quote interested in how much knowledge ill gain and b able to put in play
559995   8 years ago
Good stuff Tai!
541837   8 years ago

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