Sunday, May 21, 2017

The Undoing Project by Michael Lewis

The subtitle of this book is "A Friendship that Changed our Minds.  The Friendship is between Daniel Kahneman and Amos Tversky - two brilliant research psychologist who explored the fact that the human mind is prone to irrationality.  It turns out there are many ways that true logic fails us.  They called all the ways that assumptions we make lead us astray "heuristics".  These are things like the "halo affect" - we generalize one good quality of a person to include all aspects of that person - even qualities that aren't there.  Or "representativeness" where we see a cohesive story where there is really randomness.  Sometimes we can avoid this wrong mindedness and sometimes we can't.  This knowledge had application in government, sports, the military and eventually economics.  There were times when these two men thought as one but as Tversky's personality brought him greater recognition it caused a strain in their friendship.  In 1996, Tversky died of cancer so he was unable to share the 2012 Nobel Prize in Economics which Kahneman received for the body of work they had done together.  This is a math and psychology nerds delight but anyone would benefit from seeing how often we are tricked and want to explore what we can do to undo our wrong thinking.  Good luck with that.

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