The psychology of human misjudgment

Speech Transcript I am very interested in the subject of human misjudgment, and Lord knows I've created a good bit of it. I don't think I've created my full statistical share, and I think that one of the reasons was I tried to do something about this terrible ignorance I left the Harvard Law School with.

The psychology of human misjudgment

But this is not often so. One of my favorite cases about the power of incentives is the Federal Express case.

The Psychology of Human Misjudgment by Charles T. Munger :A Harrison Barnes

Federal Express had one hell of a time getting the night shift to do the right thing. They tried moral suasion. They tried everything in the world without luck. And, lo and behold, that solution worked.

The psychology of human misjudgment

Early in the history of XeroxJoe Wilson, who was then in the government, had a similar experience. One case of excess emphasis happened at Harvard, where B.

At one time, Skinner may have been the best-known psychology professor in the world. Using food rewards, he even caused strong superstitions, pre-designed by himself, in his pigeons. Nonetheless, Skinner was right in his main idea: They used to say: One of the doctors who participated in the removal was a family friend, and I asked him: Consider the presentations of brokers selling commercial real estate and businesses.

The general antidotes here are: The power of incentives to cause rationalized, terrible behavior is also demonstrated by Defense Department procurement history.

Background

Now there are huge implications if the human mind is put together this way. And so the cash register was a great moral instrument when it was created. He had a little store, and his employees were stealing him blind, so that he never made any money.

Perhaps the most important of these antidotes is the use of sound accounting theory and practice. The officers of Westinghouse, perhaps influenced by envy of General Electricwanted to expand profits from loans to outsiders. Now there are two special classes of loans that naturally cause much trouble for lenders.

Who was at fault?The Psychology of Human Misjudgment Economists assume that people are rational in the sense that they use all available information as they take actions intended to achieve their goals.

But behavioral economists don’t agree with the view of standard economics. Apr 10,  · The Psychology of Human Misjudgment by Charlie Munger; also known as the "25 Cognitive Biases." Charlie Munger, the billionaire investor and friend of Warren Buffett, originally presented this to.

The Psychology of Human Misjudgment by Charles T. Munger By writer Charles T. Munger is the vice-chairman of Berkshire Hathaway. He gave three separate talks ranging from about 20 to 23 years ago. These were combined into this talk (that was never made) about 25 different biases that actually are the cause of most bad decisions that people make.

The psychology of human misjudgment

The Psychology of Human Misjudgement. Charlie Munger. March 16, out of 5 stars 3 customer reviews. $ Start your day free trial of Unlimited to listen to this album plus tens of millions more songs. Exclusive Prime pricing. $ to /5(3).

Winners and Losers

Charlie Munger is the Vice Chairman of Berkshire Hathaway. He gave three talks that were combined into this talk at Harvard University on 25 different biases that are the root of most poor. The Psychology of Human Misjudgment, a speech given in by legendary investor Charlie Munger, opened my eyes to how behavioral psychology can be applied to business and problem-solving..

Munger, for those of you who haven’t heard of him, is the irreverent partner of Warren Buffett at Berkshire Hathaway.

The Psychology of Human Misjudgment by Charles T. Munger :A Harrison Barnes