2min chapter

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Ep. 52: Michael Huemer on Thinking Rationally, The Ethical Flaws of the Legal & Regulatory System and the Problem of State Authority

Stranded Technologies Podcast

CHAPTER

The Importance of Base Rate Neglect

Behavioral economics shows that there are certain deviations from correct rational thinking in certain cases. But it doesn't prove that we're irrational across the board because that would be absurd. There's like base rate neglect, where people ignore background information about how often something happens. It gets you hugely wrong results in some cases, right? Yeah.

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