“Risk Savvy: How to Make Good Decisions” by Gerd Gigerenzer is one of Michael’s favorite books from the last 10 years. Today, Michael reaches into the archives and plays an interview with Gerd Gigerenzer.
Gerd is a psychologist who studies the use of bounded rationality and heuristics in decision making and investigates how humans make inferences about their world with limited time and knowledge. He is director of the Center for Adaptive Behavior and Cognition (ABC) at the Max Planck Institute for Human Development and director of the Harding Center for Risk Literacy.
In this episode of Trend Following Radio:
Daniel Kahneman vs. Gigerenzer’s views
Heuristics vs. statistics
Instincts vs. expert advice
Relative vs. absolute risk
Benjamin Franklin’s ledger