Information Processing

I've had numerous requests to comment on the conflict in Ukraine, but have been too busy to write anything.  For background on the situa...

From the NY Review of Books, an article entitled Against Economics , which reviews the recent book by Robert Skidelsky . Money and Gove...

Polymath and economist Tyler Cowen (Holbert L. Harris Professor at GMU) joins Steve and Corey for a wide-ranging discussion. Are books jus...

Risk = space of outcomes and probabilities are known. Uncertainty = probabilities not known, and even space of possibilities may not be kn...

Tyler Cowen explains the basics of the Efficient Market Hypothesis. For a deeper exploration, see Tyler Cowen and rationality , which link...

Highly recommended: a great conversation ( transcript ) between Tyler Cowen and NYU psychology professor Johnathan Haidt. More Haidt . ...

A great conversation between Tyler Cowen and fund manager Cliff Asness, who has appeared many times on this blog. See, e.g., this 2004 po...

Nash and Milnor were involved in experimental tests of n-person game theory at RAND in 1952. Even then it was clear that game theory had ...

Becoming a behaviorialist (i.e., overcoming autism in economics ;-). Audio interview . Leading behavioral economist Richard Thaler, the R...

I thought it worthwhile to re-post my 2008 slides on the credit crisis. I wrote these slides just as the crisis was getting started (rig...

Arnold Kling on the tension between macroeconomics and the Efficient Markets Hypothesis (EMH). I'm surprised this isn't more often ...

I particularly like his comments (@13 min or so) on Snake Oil and financial assets. When market participants are exuberant (overly confide...

The excerpt below is from the Kauffman Foundation's report on venture investing. I'd like to see a similar report for hedge and pri...

Daniel Kahneman claims that differences in the performance of professional investors are mostly due to luck, whereas compensation is awarded...

Monetary incentives work for simple, mechanical tasks, but not so well for cognitively loaded tasks. Once monetary compensation is high enou...

Fantastic interview with game theorist Ariel Rubinstein on Econtalk. I agree with Rubinstein that game theory has little predictive power i...

A contrarian strategy ("the average investor is stupid") would have paid off pretty well over the last decade. Ah, the wisdom of m...

Seth Roberts (a psychology professor who splits his time between Berkeley and Tsinghua in Beijing) points me to an interesting paper by two...

There's more about trade and fiscal balances, etc., but I thought the following was particularly good. NY Review of Books : ... I think ...

Somehow I missed this! Thanks to a reader for pointing it out to me. Posner was as captured by Chicago School nonsense as anyone else, but a...