02/12/2019 by EconTalk: Russ Roberts
Psychologist and author Gerd Gigerenzer of the Max Planck Institute for Human Development talks about his book Gut Feelings with EconTalk host Russ Roberts. Gigerenzer argues for the power of simple heuristics–rules of thumb–over more complex models when making real-world decisions. He argues that many results in behavioral economics that appear irrational can be understood as sensible ways of coping with complexity.
Listen Date: 2020-01-02
- A very difficult episode to get through or draw anything from. At best, the idea of fast and frugal trees – but only the idea, and not how to apply them.
- Otherwise, it was a refutation of behavioural economics but considering I don’t know enough about behavioural economics, I was just listening bemused like RK Laxman’s common man.
- And even if you do think that gut instincts honed over years of experience work, there’s always the problem that the years of experience reflect bias – I am recalling the Flash Forward episode on AI, right now.