Nassim Taleb and Daniel Kahneman on the economic crisis

Fora.tv have a video titled Nassim Taleb and Daniel Kahneman: Reflection on a Crisis from the Digital, Life, Design (DLD) conference from January of this year. This discussion has interesting insights on what led to the current crisis, and Taleb’s recommendations to avoid this going forward, foremost of which involves nationalizing banks (to shield them [...]

Allais Paradox and Rational Decisions

Slate has a simple test of rationality, which is really the Allais Paradox. To understand the significance of the Allais Paradox, one has to go back to the Expected Utility Theory proposed by John von Neumann and Oskar Morgenstern in 1944. According to this theory, the expected utility of a gamble or a lottery with [...]