Behavioral Economics and The Pattern of Thought

A very interesting interview about Biases in Human Judgement, here are key take aways;

  1. The area of Behavioral Economics pioneered by 2 Israeli social scientists; Daniel Kahneman & Amos Tversky
  2. Human Mind not wired to make probabilistic judgements

a) Blindness to statistical truths
b) Better in story telling-skewed in predictable ways using memory, biases/stereo types and trying to find patterns where patterns don’t exist

3. There is still many applications of rational thought and hope for it becoming the norm-despite Mr Trump (last bit is my add-on to the conversation)

One conclusion I personally draw from this interview is something I always advocate which is the concept of Evidence-Driven Critical Thinking and the emphasis on effective data evaluation not merely data collation.We certainly can do a much better job in policy if we apply this simple approach.

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