Daniel Kahneman and Olivier Sibony: Noise
The Book Club
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Why Rules Are Better Than Judges
Research has been going on for about 70 years and the result is unequivocal. Rules are better than judges or at least as good. The advantage of rules is straightforward. Rules are noise free. Humans are noisy. And indeed if you manage to remove the noise from human judgment, you improve it. But that turns human judgment into a rule when you remove the noisefrom it. If you could be a slightly less noisy human system, you would retain the benefits of human judgments but at the same time reduce the noise. That's the focus.
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