Reviews of Non-fiction Books to Read — Methodology

Noise by Daniel Kahneman, Olivier Sibony and Cass R. Sunstein

Business Daniel Kahneman Finance Management Skills Methodology Noise Psychology

Noise by Daniel Kahneman, Olivier Sibony and Cass R. Sunstein

Consider the following scenario: you are holding a stopwatch in your hand. Start the watch and then stop it after precisely ten seconds, all without glancing at the time. If you repeat this process many times in a row, you will find that reaching 10 seconds on the dot is almost difficult. Sometimes you'll be a bit short, and other times you'll be a little longer. You may be off by a few milliseconds at times. Other times, you're off by a fraction of a second, or even more than that. In any case, you will wind up with a collection of mistakes that have no obvious pattern and no discernible origin as a result of this small experiment. This is an example of noise, or a series of unpredictably bad decisions. And although your mistakes in this small stopwatch experiment seem harmless enough, as you will soon discover, differences in judgment such as these may have much more severe ramifications. Please accept my invitation to the weird realm of noise.

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