Episode 361: Alex Edmans - Finding "The Truth" in Economics, Finance, and Life

55 snips

Jun 12, 2025

In this engaging discussion, Alex Edmans, a Professor of Finance at London Business School and author of 'May Contain Lies', delves into the world of misinformation and confirmation bias. He shares insights on how biased interpretation affects governance and decision-making, particularly in shaping laws. The conversation explores the pitfalls of black-and-white thinking and critically evaluates popular claims like the 10,000-hour rule. Edmans emphasizes the importance of rigorous data analysis and diverse perspectives for discerning truth in economics and beyond.

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ANECDOTE

Misinformation Shaped UK Law

A UK trade union witness misquoted research to support the view that lower CEO-worker pay gaps improve company performance.
The final corrected study showed the opposite, yet the outdated, incorrect evidence influenced UK law on pay ratios.

INSIGHT

Post-Truth Nuance

Post-truth means misinformation can be true but misleading, like outdated evidence.
Truth is elusive when information has been superseded or selectively shared.

ADVICE

Combat Confirmation Bias

Recognize your confirmation bias like an addiction to liking what confirms your views.
Actively seek and engage with opposing views to combat this bias.

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