Chapter 17, "Regression to the mean”, (originally referred to as, regression to mediocrity”) illustrates how people mistakenly think that someone (e.g., athlete, interviewee, student, or trainee), or something (e.g., stocks, horses in a race, business or team performance ) that performed especially well will maintain that performance. And someone or something that performed especially poorly …
Category: Behavioral Economics
Statistics and Judgement
Chapter 16, Causes Trump Statistics (Kahneman, 2011), explores Bayesian inference on judgement. Again, interesting viewpoint of statistics from the judgement perspective instead of strictly from an applied experimental perspective. This chapter looks at a priori information’s influence on judgement. The influence of information that can psychologically influence what information is considered or given more weight. A …
Illogical Judgement
Those who are unfamiliar with certain statistical rules may not realize how their judgement is being swayed by illogical, emotional, and unreliable intuition.Kahneman delved into statistics and how important an understanding of statistics is to good judgement (chapters 15, 16 and 17). Even the most scholarly, who are well versed in statistics, tend to have …
Thoughts and Decisions
Daniel Kahneman described two systems of thought processing and decision-making, system 1 and system 2 (Kahneman, 2011). These are not literal areas of the brain but rather a way to understand how we process and organize information and how that in turn effects our decisions, actions, and beliefs. System 1 is easy, lazy, and automatically …
Quick and Risky
Daniel Kahneman discussed the availability heuristic - when people make decisions based on the availability of an example which easily comes to mind but which may be heavily swayed by emotion. Emotional things often come most easily to mind because the brain is made to protect us from adverse effects. Therefore, if you burn yourself as …
To Start
I started this site to track my research and to document my venture into a new area of interest - Behavioral Economics or what some were calling Market Psychology and appears to be based in traditional psychology's cognitive decision-making. Cognitive decision-making was a big part of my Ph.D. in Applied and Experimental Human Factors and …
ResearchMoore 