‘Anchoring’ was at work in setting the price of Novartis’ new gene therapy If the Empire State Building happened to be hollow, could you fill it with 1 billion ping pong balls? Would that number fall short, or would you … Continue reading A multimillion-dollar price tag
Gigerenzer versus Kahneman and Tversky: The 1996 face-off Through the late 1980s and early 1990s, Gerd Gigerenzer and friends wrote a series of articles critiquing Daniel Kahneman and Amos Tversky’s work on heuristic and biases. They hit hard. As Michael … Continue reading Gigerenzer’s arguments
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 … Continue reading The cost of noise
Why We Contradict Ourselves and Confound Each Other With his book Thinking, Fast and Slow, Daniel Kahneman emerged as one of the most intriguing voices on the complexity of human thought and behavior. He is a psychologist who won the … Continue reading Daniel Kahneman’s tips
Simple Heuristics That Make Algorithms Smart Gerd Gigerenzer’s debate with Daniel Kahneman, Amos Tversky, and collaborators in the heuristics and biases research program has been one of the more interesting sideshows in psychology. Although the debate often appears to be … Continue reading Anchoring and adjustment
Daniel Kahneman: Your Intuition Is Wrong, Unless These 3 Conditions Are Met Can intuition play a role in investing? According to Daniel Kahneman, a Nobel Memorial Prize-winning behavioral economist, no. During a speech given at the World Business Forum in … Continue reading Your intuitive judgment
Economics and the Honor System There is a farm in Nantucket with hundreds of chickens, cucumbers, squash, and other produce. When I needed eggs, I could ask the farmer to walk among the chickens (who were nearby) and collect a … Continue reading The impact of the honor system
