Familiarity Bias vs. Ambiguity Effect

make the unknown to a known and know how to take care of my own business

Or otherwise known as reliance on old-fashioned financial institutions and outdated economic structures.  Partly, it is due to habit; partly, because of our concerns about liquidity; and partly, because we think that it is always risky to experiment with new things where we might lack…

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The law of small numbers

probably we desire the impossible

In my previous post I shared a few thoughts on probabilities and statistics.  I wrote about disregarding probabilities in decision making, ignoring small probabilities and not over-weighting small probabilities. A tough act to follow.  I am totally guilty of failing…

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