How You Can Predict The Future Better Than World-Famous Experts - The Art & Science of Risk with Dan Gardner
Dec 8, 2016
auto_awesome
In this insightful discussion, Dan Gardner, a New York Times best-selling author and senior fellow at the University of Ottawa, reveals how our intuitive sense of risk often misaligns with reality. He explores the surprising ineffectiveness of many experts in predicting outcomes and highlights the extraordinary abilities of 'superforecasters.' Gardner emphasizes the importance of intellectual humility and critical thinking in navigating uncertainties, offering practical strategies to improve decision-making and reduce real-life risks.
Intuitive perceptions of risk often mislead individuals, causing them to underestimate actual dangers and make flawed decisions based on emotional reactions.
Effective decision-making is enhanced by introspection and metacognition, encouraging individuals to reflect on their judgments and acknowledge their fallibility.
Superforecasters excel by employing intellectual curiosity and a systematic approach to breaking down complex questions, leading to more accurate predictions.
Deep dives
The Intuitive Sense of Risk
Intuitive risk perception often misleads individuals regarding actual dangers. For example, after 9/11, many people felt flying was too risky and chose to drive instead, despite statistics showing driving is far more dangerous. This phenomenon reflects how emotional reactions to events can skew our understanding of risk. Misinformed risk judgments can therefore guide people toward greater dangers rather than away from them.
The Power of Introspection
Effective decision-making relies heavily on introspection and metacognition, or thinking about one's own thinking. Individuals who reflect on their judgments and actively seek to understand potential errors tend to make better decisions. The concept is exemplified by investor George Soros, who credits his success to his ongoing acknowledgment of his fallibility. This intellectual humility leads to improved judgment and forecasting, as individuals become more willing to adjust their views based on evidence.
Forecasting Styles: Foxes vs. Hedgehogs
The difference in forecasting accuracy often stems from how experts think, categorized metaphorically as 'foxes' and 'hedgehogs'. Hedgehogs focus on a single analytical lens, often leading to overconfidence and poor predictions, while foxes draw from diverse perspectives and remain open to multiple possibilities. Research shows that foxes tend to outperform their hedgehog counterparts, who are often less accurate in their forecasts. This suggests that a nuanced understanding of complexity enables more precise forecasting.
Intellectual Humility and Probabilistic Thinking
Intellectual humility is essential for effective decision-making, promoting a willingness to acknowledge uncertainty and the limits of one's knowledge. This mindset encourages probabilistic thinking, where individuals assess risks in terms of likelihood rather than absolutes. The ability to think in probabilities allows for more nuanced assumptions about future events, improving forecasting accuracy. Enhanced decision-making skills can emerge from individuals who practice this mindset consistently.
Becoming a Super Forecaster
Super forecasters distinguish themselves through intellectual curiosity, active open-mindedness, and a rigorous process of unpacking complex questions into manageable parts. They approach forecasting with a growth mindset, believing their skills can improve through practice and critical reflection on outcomes. This systematic breakdown of questions allows them to draw accurate, evidence-based conclusions. Consequently, those who embrace hard work and a methodical approach to thinking can significantly enhance their decision-making capabilities.
In this episode we discuss the radical mismatch between your intuitive sense of risk and the actual risks you face. We look at why most experts and forecasters are less accurate than dart throwing monkeys. We talk about how to simply and easily dramatically reduce your risk of most major dangers in your life. We explore the results from the “good judgment project” study of more than 20,000 forecasts. We talk about what superforecasters are and how they beat prediction markets, intelligence analysts with classified information, and software algorithms to make the best possible forecasts and MUCH more with Dan Gardner.
Dan Gardner is a New York Times best-selling author and a senior fellow at the University of Ottawa’s Graduate School of Public and International Affairs. His latest book Superforecasting: The Art and Science of Prediction, which he co-authored with Philip Tetlock. Superforecasting was chosen as one of the best books of 2015 by The Economist, Bloomberg, and Amazon. Dan is also the author of Future Babble and Risk: The Science and Politics of Fear and previously worked as a policy advisor to the Premier of Ontario and a journalist with the Ottawa Citizen. How and why people make flawed judgements about riskThe radical mismatch between our intuitive sense of risk and the actual risks we faceWhy we are the safest, healthiest, wealthiest people to live on planet earth (and we don't realize it)Why we focus on vivid, dramatic risks, and ignore the real dangers in our livesHow to simply and easily dramatically reduce your risk of most major dangers in your lifeThe power of “meta cognition,” what it is, and why it’s so importantLessons you can learn from the mega successful investor George SorosWhy most forecasters are less accurate than monkeys throwing dartsThe difference between foxes and hedgehogs (and why you never want to be one of them)The inverse correlation between fame and prediction accuracyWhat cancer diagnosis shows about how averse people are to uncertaintyThe universal principles of good judgementThe importance of intellectual humility and intellectual curiosityWhy certainty is an illusion and nothing is ever certainWhy everything is a question of degrees of maybe (probabilistic thinking)The results from the “good judgement project” study of more than 20,000 forecastsWhat superforecasters are and how they beat prediction markets, intelligence analysts with classified information, and software algorithms to make the best possible forecastsThe differences between these “superforecasters” and regular forecastersThe importance of being “actively open minded"Why you should unpack smaller questions & looking things like base ratesHow to use “fermi estimates” to solve tough and challenging problemsWhy the growth mindset had a huge impact on positive ability to forecast
Learn more about your ad choices. Visit megaphone.fm/adchoices
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode