Let me advertise my absolute favorite: an obscure Hungarian writer called Geza Csath. He was a doctor and journalist at beginning of the 20th century and he wrote the most beautiful and objective stories on self-deception and other human weaknesses. Highly accurately, without moralizing or romanticizing.

I've only read the originals, but I hope the translation is not too bad. (Unfortunately, in English, it is available only used: http://www.amazon.com/Magicians-Garden-Other-Stories/dp/0231047320/ref=sr_1_4?s=books&ie=UTF8&qid=1281569193&sr=1-4

A good book I am reading currently is The Art Of Choosing by Sheena Iyengar.