Behavioral finance, Complexity, Economics, Market psychology

Don’t go jumping to conclusions…

… especially if you are dealing with abstract or complex problems. We do have something of a tendency to fall into misconceptions and cognitive errors through “conscious theorizing“. That’s quite a word salad so let me explain…

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Policy, Politics, Psychology, Social development

Brexit and the wisdom of crowds

In the aftermath of last week’s Brexit referendum many denounced the English vote with a mix of derision and indignation: the old and the uneducated crowds destroyed the European dream for everyone else. But would democracy be better if it were restricted to the best educated segment of the population? Let’s consider the idea of “wisdom of crowds.” This mysterious and utterly fascinating concept suggests that humanity evolved to be collectively intelligent and that the crowds tend to be more intelligent than the most intelligent of its members. If you have not yet come across this, prepare to be amazed (and keep an open mind): Continue reading

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