What’s particularly interesting about these studies (detailed below) is the clarity they provide about our vulnerability to cognitive biases. Where investors are able to reason objectively, they comfortably outperform algorithms. Where they can’t, they are soundly beaten.

So what can we do to ameliorate this problem? Making individuals better at thinking and seeing the blind spots in their own individual reasoning will only go so far. What we need are better collective means of thinking. As Hugo, Melissa and I argue here (academic article, but I think fairly readable), much of the work on human cognitive bias... See more

we need to consider the

fundamental dogma of theories of choice. The concept of choice as a

focus for interpreting and guiding human behavior has rarely had an

easy time in the realm of ideas. It is beset by theological disputations

over free will, by the dilemmas of absurdism, by the doubts of

psychological behaviorism, by the claims of historical,... See more