Hidden Brain Where Truth Lies
Jul 29, 2024
Economist Alex Edmans delves into the multifaceted nature of misinformation, revealing how it often lurks in our blind spots. He discusses its insidious effects, especially in corporate scandals like British Home Stores. Edmans also uncovers the subtle relationship between employee satisfaction and CEO compensation, challenging misconceptions around corporate performance. Additionally, he emphasizes the need for critical evaluation in issues like breastfeeding, while sharing insights on mastery and the importance of curiosity in combating biases.
AI Snips
Chapters
Transcript
Episode notes
BHS Scandal
- BHS, a UK department store chain, went bankrupt in 2016, leaving employees without full pensions.
- Owner Philip Green's extravagant lifestyle, including a $150 million yacht, fueled public outrage.
Misrepresented Research
- Alex Edmans heard a claim that lower CEO-worker pay gaps correlated with better company performance.
- Upon researching, he found the cited study actually showed the opposite after peer review corrections.
Confirmation Bias in BHS Inquiry
- The desire for evidence supporting pre-existing beliefs can lead to misinterpreting or dismissing conflicting data.
- This confirmation bias influences how people perceive and process information, especially in emotionally charged situations.