309 - They Thought We Were Ridiculous - Andy Luttrell (rebroadcast)
You Are Not So Smart
Challenging Economic Rationality
This chapter examines how cognitive biases and heuristics distort people's judgment regarding probabilities, illustrated through the famous Linda problem. It highlights the influence of human intuition on decision-making and explores anecdotes that reveal the clash between traditional economic theories and real-world behaviors. The discussion ultimately emphasizes the necessity of revising our understanding of rationality in economic contexts, sparked by the groundbreaking work of Kahneman and Tversky.
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