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Tag Archives: heuristics

Nassim Taleb on the Financial Crisis

From EconTalk.org (Includes full transcript). Direct link to mp3 interview Nassim Taleb talks about the financial crisis, how we misunderstand rare events, the fragility of the banking system, the moral hazard of government bailouts, the unprecedented nature of really, really bad events, the contribution of human psychology to misinterpreting probability and the dangers of hubris. […]

Daniel Kahneman – A Bat and a Ball Cost $1.10

[Update 9/8/2010 A paper Danny co-authored, “Income’s Influence on Happiness” has just been released.] … the bat costs $1 more than the ball. How much does the ball cost? Daniel Kahneman KNOWS that the first thought that entered your head was $.10–even if you’re a Computer Science major at MIT. But that’s the wrong answer. […]