The pundit’s credo

July 28, 2009 in Economics

A new study shows that humans would rather our advisors be confident than actually correct:

The research, by Don Moore of Carnegie Mellon University in Pittsburgh, Pennsylvania, shows that we prefer advice from a confident source, even to the point that we are willing to forgive a poor track record. Moore argues that in competitive situations, this can drive those offering advice to increasingly exaggerate how sure they are.

Behavioral economists should be all over this…

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