Improve your critical thinking skills in just 6 minutes | Alex Edmans for Big Think+

6 snips

May 17, 2025

In this enlightening discussion, Alex Edmans, a Professor of Finance at London Business School and author of "May Contain Lies," delves into the nuances of critical thinking. He argues that simply fact-checking isn’t enough; understanding the difference between correlation and causation is key. Edmans emphasizes how our confirmation bias can cloud judgment, particularly in areas like health and nutrition. By fostering skepticism and discernment, we can sharpen our ability to navigate the murky waters of misinformation.

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INSIGHT

Misinformation Can Be Misleading

Misinformation often appears rigorous due to authority or format but isn't always reliable.
Facts can be true yet misleading without context or causation understanding.

INSIGHT

Beware Confirmation Bias

Confirmation bias makes us favor evidence that supports our pre-existing views.
Correlation does not imply causation; environmental factors can confound conclusions.

ANECDOTE

Breastfeeding and IQ Example

Breastfeeding is commonly linked to higher IQ but may be influenced by supportive home environments.
Breastfeeding's benefits might partly reflect parental background, not solely the milk itself.

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“People will claim that something is rigorous because it's by an authority figure, or it's written in a book. But anyone can write a book.”

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We often think the solution to misinformation is fact checking. But just checking facts is not enough. Even if a fact is 100% accurate, it could still be misleading – it could be a large-scale correlation when there’s no causation.

The solution to misinformation is not obtaining a PhD in statistics, London Business School professor Alex Edmans and author of “May Contain Lies” argues. We often already possess the discerning skills to distinguish truth within ourselves.

Misinformation is so prevalent today because we suffer from confirmation bias, or the idea that we have a certain view of the world which causes us to latch onto any piece of evidence that supports our viewpoint. When we inject skepticism into our thought process, we can overcome these biases.

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About Alex Edmans:

Alex Edmans is Professor of Finance at London Business School. Alex graduated from Oxford University and then worked for Morgan Stanley in investment banking (London) and fixed income sales and trading (New York). After a PhD in Finance from MIT Sloan as a Fulbright Scholar, he joined Wharton in 2007 and was tenured in 2013 shortly before moving to LBS.

Alex’s research interests are in corporate finance, responsible business and behavioural finance. He is a Director of the American Finance Association; Vice President of the Western Finance Association; Fellow, Director, and Chair of the Ethics Committee of the Financial Management Association; Fellow of the British Academy; and Fellow of the Academy of Social Sciences. From 2017-2022 he was Managing Editor of the Review of Finance, the leading academic finance journal in Europe.

Alex has spoken at the World Economic Forum in Davos, testified in the UK Parliament, presented to the World Bank Board of Directors as part of the Distinguished Speaker Series, and given the TED talk What to Trust in a Post-Truth World and the TEDx talks The Pie-Growing Mindset and The Social Responsibility of Business with a combined 2.8 million views. He has written for the Wall Street Journal, Financial Times, Harvard Business Review and World Economic Forum and been interviewed by Bloomberg, BBC, CNBC, CNN, ESPN, Fox, ITV, NPR, Reuters, Sky News, and Sky Sports.

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