Bias has been overestimated at the expense of noise

Daniel Kahneman (Nobel 2002) is of course known for his extensive work on behavioral biases and how they affect economic decisions. He’s now working on a new book, together with Olivier Sibony and Cass Sunstein, in which he focuses instead on the concept of “noise”. Here’s a précis of Kahneman’s current thinking on this and other topics, drawn from an interview with Tyler Cowen (both video and a transcript are available at “Daniel Kahneman on Cutting Through the Noise,” December 19, 2018). KAHNEMAN: First of all, let me explain what I mean by noise. I mean, just randomness. ….[READ]