what the a s were doing was stripping the equation out of managing a ball game. it s been pioneered by a pair of israeli scientists who did groundbreaking work on behavioral economics, a field that focuses on the biases and irrational behavior of human beings. lewis had never heard of it so he dug into the topic and ended up writing a book about the duo. the undoing project of friendship that changed our minds. welcome back, michael. thank you, fareed. good to see you. so one of the things that we always talk about nowadays is the way in which people act irrationally. so even in this leelection, peoe say they don t act in the kmikt interest and there are all of these irrational or hidden biases we have.
what went wrong is there is a fundamental asummings in what we call classic economics, the things that everybody has been dealing with over the years, in that we presumed that the degree to which people act irrationally and everybody admits they do that quite a great deal of time was random. meaning it didn t matter. it wafshed out and was only rational thinking. you didn t believe irrational economic behavior was something you could forecast. is that the fair way that s the conclusion i came to as a consequence of the assumption, which everyone every major forecast implicitly had that assumption. what this book every defrs to do is to demonstrate that that premise is wrong, that is irrational behavior, emotional behavior, is systemic. fear is an extremely dominant force, far more than euphoria