By Science News, 12:47 PM July 14, 2011
Irrational with money
Bruce Bower’s excellent article on “Simple heresy” (SN: 6/4/11, p. 26) showcases the blindness of mainstream economics. Namely, economics is often more like the weather than a game of dice: chaotic — with catastrophes, cycles and all manner of weird behavior. Yet economists continue to use statistical models that work “until they don’t.” So it is not surprising that investment strategies that use simple heuristics may do better than the pseudoscience of econom...
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