Category: Behavioral Economics

The Halo Effect | Painting: Saint Lawrence by Bonanat Zaortiga

The Halo Effect

Don’t put people, or anything else, on pedestals, not even your children. Avoid global labels such as genius or weirdo. Realize those closest get the benefit of the doubt and so do the most beautiful and radiant among us. Know the halo effect causes you to see a nice person...

Status Quo Bias | Painting: The persistence of Memory by Salvador Dali

Status Quo Bias: Let’s stay the same

Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About...

Loss Aversion

“In trying to make sense of this pessimism, Ridley, like Kahneman, sees a combination of cognitive biases and evolutionary psychology as the core of the problem. He fingers loss aversion—a tendency for people to regret a loss more than a similar gain—as the bias with the most impact on abundance....

The Dunning-Krueger Effect

The Dunning-Krueger Effect

  One of the painful things about our time is that those who feel certainty are stupid, and those with any imagination and understanding are filled with doubt and indecision. Bertrand Russell Ignorance more frequently begets confidence than does knowledge. Charles Darwin We cannot accurate ourselves accurately and we often...