Inspired by some exploration of the world.

Sunday, November 22, 2009

Binary outcomes

We are not hardwired to judge outcomes using probabilities. We judge outcomes using success or failure.

For example, many of us have a gut feeling that Belichick made the wrong decision.

And when we pin our happiness on outcomes, it is prone to peaks and valleys.
I'm always reminding myself of this.

1 comment:

Dan said...

good point. i think about this often as well!

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Student at NYU, pursuing a PhD in economics.