In this video I introduce the sunk-cost fallacy, which is when we make present decisions based on previous investments which aren’t relevant. This fallacy can occur in the form of gamblers or investors who make increasingly risky decisions in order … Read More
The Framing Effect
In this video I introduce Tversky and Kahneman’s work on the framing effect and how consideration of benefits or losses can influence the choices that people make and their willingness to take risks. I consider a few everyday examples of … Read More
The Representativeness Heuristic
In this video I describe another heuristic identified by the work of Amos Tversky and Daniel Kahneman. The representativeness heuristic is a shortcut that we use when attempting to estimate the odds of something being true, such as whether an … Read More
The Availability Heuristic
In this video I provide an introduction to behavioral economics and the work of Amos Tversky and Daniel Kahneman by describing a heuristic we use when attempting to assess the frequency of events. The availability heuristic is a shortcut that … Read More