Daniel Kahneman’s 2012 popular bestseller “Thinking Fast and Slow” is based on over 30 years academic research into decision making under uncertainty and has a large dose of practical heuristics and biases within its pages. It’s a great read. Get someone to buy it for you if you haven’t read it.
Hot on the heels of the success of Kahneman’s book it now seems that those responsible for UK competition policy are being encouraged to take more account of the impact of heuristics and biases and other behavioural economics effects. A new book by UEA’s Centre for Competition Policy (CCP), launched tomorrow on 27th November 2013 at the Competition Commission, offers an interesting set of perspectives in this area.
You can get a free download of the book at: http://competitionpolicy.ac.uk/ccpbook and it is worth a read if you have any interest at all in the many influences on our bounded rationality and flawed decision making powers. I’ve recently finished teaching my MBA course in Strategic Risk Management and it is surprisingly easy to make people doubt their rationality after exercises in such things as anchoring, and framing! Both the Kahneman and CCP books will help us all understand why this is.