- Definition: The tendency for preconceived value judgements to interfere with our assessment of costs and benefits.
The Ascent of Money
by Niall Ferguson
Published date: 2008
Category: History
Index Topics & Notes
- Insight: Asymmetric information plays a role in stock market bubbles - insiders become concerned with bubble companies and exploit this information fraudulently.
- Insight: Confirmation bias makes us more inclined to look for confirming evidence of our beliefs, rather than evidence that would disprove them.
- Insight: Hindsight Bias causes us to attach higher probabilities to events after they have happened that we did before they happened.