The problem of weighing multiple factors.

Crowds are associated with significant investment mistakes.

This is what I found interesting from the current issue of the “The Economist” (July 24th - July 30th 2010).

A chronology.

“Sub-optimal decisions may result not only from biased information processing but also as a consequence of other heuristics, which are not particularly related to the assessment of probabilities.”

Banks spend a lot of time worrying about their own short-term risk, but much less on systemic risk.

Modelling does not help in any forecast.

Why revenge is pleasurable and deeply irrational.

Bayes’ theorem and a brainteaser