Lollapalooza Tendency Bias
Number 23 Of The 25 Cognitive Biases...
The lollapaloozza tendency is the result of multiple cognitive biases combining together to form an almost irresistible offer or scenario.
Examples Of The Lollapalooza Tendency Bias
Examples of lollapalooza situations include:
- Tupperware parties
An auction is the perfect example of the lolapolooza effect, as it incorporates the following biases:
Scarcity bias (there’s only one item and a limited amount of time to bid/buy it)
Social proof bias (there’s other people there interested in purchasing and bidding on the same items as you)
Authority bias (the auctioneer is physically positioned higher than you and is seen as an authority)
Reward bias (the ‘feel good’ moment and dopamine release upon ‘winning’ regardless of whether this comes as a result of paying above market value)
How To Avoid Falling Victim To The Lollapalooza Tendency Bias
Avoid these situations, they're too powerful to overcome.
Want To Know More About Charlie Munger's Cognitive Biases & How To Dominate Life?
I recently purchased Charlie Munger’s flagship book, Poor Charlie’s Almanack – a book filled with hundreds of pages of wisdom from a billionaire and master of mindset and mental frameworks to improve your life..
This book cost me $65 USD. To most this will seem absurd…
“$65 for a book?! What a waste of money”
…these are the same people that spend hundreds of dollars on junk food and alcoholic beverages on Friday and Saturday night.
Delay The Instant Gratification
Don’t adopt the epicurean mentality of “eat, drink and be merry for tomorrow we die.”
You must think long term, you must delay the instant gratification we’re so used to experiencing in this life and invest for tomorrow (stoicism).
“Don’t invest in things that’ll rust, rot or depreciate, invest in things that’ll be worth more later or make you be worth more later”.
The information in this book is worth well over $65 if read and implemented, the information on investing and cognitive biases is worth its weight in gold.
But remember, It’s the application of knowledge that counts, not just the acquisition (read it and take action!)