The Importance of System Three Processes

One school of thought which attempts to explain bubbles by using a family of what I call for short vertical heuristics. This is like Daniel Kahneman's system one. But we are a cultural species and to hijack Kahneman's metaphor, I think it's more fertile to think about system three. And we react to one another. We don't act in isolation. It's not like when a bubble happens, it's just like everyone coincidentally making the same mistake around the same time. People are reacting to each other. So they're still there, the individual level biases are still there, but they can underpin they can be at least part of the underpinning of how we interact