Chapter
Debunking Loss Aversion and Other Cognitive Biases in Economics
19:00 - 25:11 (06:11)
Economist David Gall argues that loss aversion is not a general cognitive bias and cannot be used to explain all loss and gain-related phenomena. He also points out the existence of conformity bias as a more predictable example of irrational behavior.
Clips
Researcher David Gall points out that the whole idea of economists thinking people are rational and behavioral economics being a new field is a strawman.
19:00 - 20:58 (01:58)
Summary
Researcher David Gall points out that the whole idea of economists thinking people are rational and behavioral economics being a new field is a strawman. This turn towards behavioral economics is really just a triumph of marketing psychological principles as economic ones.
ChapterDebunking Loss Aversion and Other Cognitive Biases in Economics
Episode"Nudge" Part 1: A Simple Solution For Littering, Organ Donations and Climate Change
PodcastIf Books Could Kill
In this episode, the hosts discuss the issues with pop science and why it can be misleading, particularly in the context of the concept of loss aversion.
20:58 - 23:20 (02:22)
Summary
In this episode, the hosts discuss the issues with pop science and why it can be misleading, particularly in the context of the concept of loss aversion. They argue that there is no general cognitive bias that leads people to avoid losses more than to pursue gains and that specific explanations are needed for why losses may be more consequential in certain situations.
ChapterDebunking Loss Aversion and Other Cognitive Biases in Economics
Episode"Nudge" Part 1: A Simple Solution For Littering, Organ Donations and Climate Change
PodcastIf Books Could Kill
In this podcast episode, the speaker discusses how humans are predictably irrational and prone to conformity bias, as demonstrated in the optical illusion study where people conform to what others are saying about the length of lines.
23:20 - 25:11 (01:50)
Summary
In this podcast episode, the speaker discusses how humans are predictably irrational and prone to conformity bias, as demonstrated in the optical illusion study where people conform to what others are saying about the length of lines. The episode uses examples, such as a grad student incentivized to finish his PhD and a low-income savings program, to show how nudges and irrational decision making can result in positive outcomes.