A great presentation on the psychology and different biases of the mind. This is one of the areas I find most interesting from an investing perspective. I highly recommend you spend some time going through it. Thanks goes to Nathan.
When 100 residents of a neighborhood are asked to contribute to a city council candidate, most decline. But if they are approached about putting up a yard sign, many will agree. Then, having made a public commitment, the same people are far more likely to make a contribution, even with no new information. Once people take a stand publicly, they become more attached to it. Talking about it cements the idea internally and any new information is underweighted.
“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of their adversaries…and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it.” Niccolo Machiave lli