Bryan wrote:
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This is almost orthogonal to my original point, but not quite. It
wouldn't be interesting if the expected cost of bad judgment was
$100/year, would it? So even taking a policy perspective, expected
value of error matters.
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Agreed, but I think the evidence here is that cognitive anomalies can cause big
losses. Sure the vast majority of the time confusing .0000000001 with .00001 doesn't
make much difference in ones life, but if people consistently confuse the two when
making decisions about (for example) occupational safety and health, that can have big
effects in the aggregate the might be addressed by policy. -- Bill Dickens
William T. Dickens
The Brookings Institution
1775 Massachusetts Avenue, NW
Washington, DC 20036
Phone: (202) 797-6113
FAX: (202) 797-6181
E-MAIL: [EMAIL PROTECTED]
AOL IM: wtdickens
