5/19/2023 0 Comments The undoing project lewisThe book offers an engrossing biographical perspective on this brilliant academic duo. “The Undoing Project” explores the how and why of this type of human irrationality, and the history of K&T’s research effort to explore human decision-making under uncertainty. If you read his book, “Moneyball,” you know that the Oakland A’s overcame the lowest payroll in baseball by focusing on statistics-driven algorithms, instead of flawed human scouting assessments. Michael Lewis has a way of shedding light on overlooked areas that can have profound influences. In “The Undoing Project: A Friendship That Changed Our Minds,” Michael Lewis tells the story of K&T’s remarkable collaboration and one of the most productive academic partnerships in history. Although Kahneman went on to win a Nobel Prize in 2002 in connection with this body of work, Tversky, sadly could not share it since he passed away in 1996 (the Nobel is only awarded to living scholars). The emergent field of behavioral economics puts our irrational tendencies under the microscope, and is largely based on discoveries that arose from a unique collaboration between two Israeli psychologists, Daniel Kahneman and Amos Tversky (K&T). One cannot be a student of investing without also being a student of psychology. In the world of investing, for instance, psychology can help us understand the systematically poor decision-making that drives the academic anomalies explored on this blog. Psychology permeates nearly every area of human endeavor.
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