Money Isn't About Economic Security (For Most of Us)

Money Isn’t About Economic Security (For Most of Us)

Tyler Cowen started his February 28th, 2018 podcast interview with his colleague from George Mason University, Robin Hanson, with the following:   "Robin, if politics is not about policy, medicine is not about health, laughter is not about jokes, and food is not about nutrition, what are podcasts not about?"   Hanson goes on to … Continue reading Money Isn’t About Economic Security (For Most of Us)

Risk Averse and Risk Seeking - Joe Abittan

Risk Averse and Risk Seeking

I would generally categorize myself as somewhat risk averse, but studies from Daniel Kahneman in Thinking Fast and Slow might suggest that I'm not really any different than anyone else. I might just be responding to the set of circumstances that I typically experience, similar to anyone else, and I might just be more aware … Continue reading Risk Averse and Risk Seeking

Denominator Neglect - Joe Abittan

Denominator Neglect

"The idea of denominator neglect helps explain why different ways of communicating risks vary so much in their effects," writes Daniel Kahneman in Thinking Fast and Slow.   One thing we have seen in 2020 is how difficult it is to communicate and understand risk. Thinking about risk requires thinking statistically, and thinking statistically doesn't … Continue reading Denominator Neglect

Imagining Success Versus Anticipating Failure

Imagining Success Versus Anticipating Failure

I am guilty of not spending enough time planning what to do when things don't work out the way I want. I have written in the past about the importance of planning for failure and adversity, but like many others, I find it hard to do and hard to get myself to sit down and … Continue reading Imagining Success Versus Anticipating Failure

Why Terrorism Works

Why Terrorism Works

In the wake of terrorism attacks, deadly shootings, or bizarre accidents I often find myself trying to talk down the threat and trying to act as if my daily life shouldn't be changed. I live in Reno, NV, and my city has experienced school shootings while my state experienced the worst mass shooting in the … Continue reading Why Terrorism Works

Desperate Gambles

Desperate Gambles

Daniel Kahneman worked with Amos Tversky to develop many of the concepts that today create the principle of Prospect Theory. Many people are familiar with the psychological and economic principle of Game Theory, and Prospect Theory is a similar psychological and economic theory of how people behave when faced with uncertainty. In his book Thinking … Continue reading Desperate Gambles