Expected Value in Rational Decision Making

Do our brains trick us into thinking things are worse than they are? In this episode, Dr. Steven Pinker, experimental psychologist and world-renowned author, joins host Annie Duke, co-founder of the Alliance for Decision Education, to explore why we make irrational decisions and to share some useful tools to help improve our judgment. They discuss how our brains are wired for nostalgia and why we erroneously think that the world is getting worse. Steven also explains how expected value can be a useful decision-making tool. And finally, Steven and Annie discuss game theory and negative externalities, revealing what hockey players wearing helmets have in common with ordinary citizens trying to save the planet!