This was a very good book. It really explains a lot.
http://www.amazon.com/How-We-Decide-Jon ... 857&sr=8-1
A brief description/discussion of books recommended by forum participants
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If you liked that book, you'll probably like The Art of Choosing. It covers the same subject, but it's more recent, so it has more recent research. It focuses more on the research, and less on telling stories, i.e., it's less Malcolm Gladwell-ish than How We Decide.