Sorting Fact From Fiction: Why Expertise Matters I know nothing about cars—but my dad does. That’s why I am asking for his advice ahead of buying a new car. He is the best expert at my disposal, and I trust … Continue reading Are we all experts?
Confirmation Bias: Why You Should Seek Out Disconfirming Evidence Confirmation bias is our tendency to cherry pick information which confirms pre-existing beliefs or ideas. This is also known as myside bias or confirmatory bias. Two people with opposing views on … Continue reading The desire to be right
How Apple and Aldi address behavioural barriers It’s one of the great ironies that behavioural economics has a behavioural economics problem. Specifically, choice paralysis. When push comes to shove and you have to do something to improve your business — … Continue reading Getting customers to care
Financial Literacy Month…with a Behavioral Twist As an unabashed finance nerd, I love a good tip about how to improve my financial health. I always look forward to April, Financial Literacy Month, for a flood of recommendations. Managing personal finances … Continue reading Behavioral literacy tips for finance
The evolutionary element of markets Economists have been accused of “physics envy”, an obsession with constructing precise mathematical models instead of studying the real, messy, world. But a new book suggests that economists have been looking at the wrong science; … Continue reading The adaptive markets hypothesis
Overlooking purchase insurance can be costly Software developer Ram Balakrishnan was skeptical about his credit card’s purchase security benefit when his son broke a new video game console shortly after opening the gift. But after checking with the card issuer, … Continue reading Insurance is boringly complex
Big Returns from Thinking Small Our latest Freakonomics Radio episode is called “Big Returns from Thinking Small.” By day, two leaders of Britain’s famous Nudge Unit use behavioral tricks to make better government policy. By night, they repurpose those tricks … Continue reading The thinking-small approach