Radical Uncertainty: Decision-Making Beyond the Numbers

Radical Uncertainty: Decision-Making Beyond the Numbers
Author: John Kay
Publisher: W. W. Norton & Company
Total Pages: 407
Release: 2020-03-17
Genre: Business & Economics
ISBN: 1324004789

Much economic advice is bogus quantification, warn two leading experts in this essential book, now with a preface on COVID-19. Invented numbers offer a false sense of security; we need instead robust narratives that give us the confidence to manage uncertainty. “An elegant and careful guide to thinking about personal and social economics, especially in a time of uncertainty. The timing is impeccable." — Christine Kenneally, New York Times Book Review Some uncertainties are resolvable. The insurance industry’s actuarial tables and the gambler’s roulette wheel both yield to the tools of probability theory. Most situations in life, however, involve a deeper kind of uncertainty, a radical uncertainty for which historical data provide no useful guidance to future outcomes. Radical uncertainty concerns events whose determinants are insufficiently understood for probabilities to be known or forecasting possible. Before President Barack Obama made the fateful decision to send in the Navy Seals, his advisers offered him wildly divergent estimates of the odds that Osama bin Laden would be in the Abbottabad compound. In 2000, no one—not least Steve Jobs—knew what a smartphone was; how could anyone have predicted how many would be sold in 2020? And financial advisers who confidently provide the information required in the standard retirement planning package—what will interest rates, the cost of living, and your state of health be in 2050?—demonstrate only that their advice is worthless. The limits of certainty demonstrate the power of human judgment over artificial intelligence. In most critical decisions there can be no forecasts or probability distributions on which we might sensibly rely. Instead of inventing numbers to fill the gaps in our knowledge, we should adopt business, political, and personal strategies that will be robust to alternative futures and resilient to unpredictable events. Within the security of such a robust and resilient reference narrative, uncertainty can be embraced, because it is the source of creativity, excitement, and profit.

Radical Uncertainty

Radical Uncertainty
Author: Mervyn King
Publisher: Bridge Street Press
Total Pages: 560
Release: 2021-09-02
Genre: Business & Economics
ISBN: 9780349143996

Obliquity

Obliquity
Author: John Kay
Publisher: Profile Books
Total Pages: 225
Release: 2011-02-03
Genre: Business & Economics
ISBN: 1847651852

If you want to go in one direction, the best route may involve going in another. This is the concept of 'obliquity': paradoxical as it sounds, many goals are more likely to be achieved when pursued indirectly. The richest men and women are not the most materialistic; the happiest people are not necessarily those who focus on happiness, and the most profitable companies are not always the most profit-oriented as the recent financial crisis showed us. Whether overcoming geographical obstacles, winning decisive battles or meeting sales targets, history shows that oblique approaches are the most successful, especially in difficult terrain. John Kay applies his provocative, universal theory to everything from international business to town planning and from football to managing forest fire.

Theory of Decision Under Uncertainty

Theory of Decision Under Uncertainty
Author: Itzhak Gilboa
Publisher: Cambridge University Press
Total Pages: 216
Release: 2009-03-16
Genre: Business & Economics
ISBN: 052151732X

This book describes the classical axiomatic theories of decision under uncertainty, as well as critiques thereof and alternative theories. It focuses on the meaning of probability, discussing some definitions and surveying their scope of applicability. The behavioral definition of subjective probability serves as a way to present the classical theories, culminating in Savage's theorem. The limitations of this result as a definition of probability lead to two directions - first, similar behavioral definitions of more general theories, such as non-additive probabilities and multiple priors, and second, cognitive derivations based on case-based techniques.

Just Choose

Just Choose
Author: Michael Phillips
Publisher: XinXii
Total Pages: 65
Release: 2020-03-24
Genre: Religion
ISBN: 3966332841

Are you “All In?” We’ve all struggled with questions like, “What is my purpose?” “Am I living the Life God wants me to live?” Or, “Am I doing what I was created for?” This book is both an intimate journey with one man in pursuit for answers, and also a specific message from God for His people today. Live the life you were born to live! Be inspired and challenged to take measure of your life Learn how simple life can really be in a complicated world Discover how to deal with life’s disappointments

Beyond Uncertainty

Beyond Uncertainty
Author: Katie Steele
Publisher: Cambridge University Press
Total Pages: 120
Release: 2021-09-09
Genre: Science
ISBN: 1108608043

The main aim of this Element is to introduce the topic of limited awareness, and changes in awareness, to those interested in the philosophy of decision-making and uncertain reasoning. While it has long been of interest to economists and computer scientists, this topic has only recently been subject to philosophical investigation. Indeed, at first sight limited awareness seems to evade any systematic treatment: it is beyond the uncertainty that can be managed. On the one hand, an agent has no control over what contingencies she is and is not aware of at a given time, and any awareness growth takes her by surprise. On the other hand, agents apparently learn to identify the situations in which they are more and less likely to experience limited awareness and subsequent awareness growth. How can these two sides be reconciled? That is the puzzle we confront in this Element.

Naturalistic Decision Making

Naturalistic Decision Making
Author: Caroline E. Zsambok
Publisher: Psychology Press
Total Pages: 435
Release: 2014-01-02
Genre: Psychology
ISBN: 1317779606

If you aren't using the term naturalistic decision making, or NDM, you soon will be. Even as a very young field, NDM has already had far-reaching applications in areas as diverse as management, aviation, health care, nuclear power, military command and control, corporate teamwork, and manufacturing. Put simply, NDM is the way people use their experience to make decisions in the context of a job or task. Of particular interest to NDM researchers are the effects of high-stake consequences, shifting goals, incomplete information, time pressure, uncertainty, and other conditions that are present in most of today's work places and that add to the complexity of decision making. Applications of NDM research findings target decision aids and training that help people in their decision-making processes. This book reports the findings of top NDM researchers, as well as many of their current applications. In addition, the book offers a historical perspective on the emergence of this new paradigm, describes recent theoretical and methodological advancements, and points to future developments. It was written for people interested in decision making research and applications relative to a diverse array of work settings and products such as human-computer interfaces, decision support systems, individual and team training, product designs, and organizational development and planning.

How We Learn

How We Learn
Author: Stanislas Dehaene
Publisher: Penguin
Total Pages: 369
Release: 2021-02-02
Genre: Science
ISBN: 0525559906

“There are words that are so familiar they obscure rather than illuminate the thing they mean, and ‘learning’ is such a word. It seems so ordinary, everyone does it. Actually it’s more of a black box, which Dehaene cracks open to reveal the awesome secrets within.”--The New York Times Book Review An illuminating dive into the latest science on our brain's remarkable learning abilities and the potential of the machines we program to imitate them The human brain is an extraordinary learning machine. Its ability to reprogram itself is unparalleled, and it remains the best source of inspiration for recent developments in artificial intelligence. But how do we learn? What innate biological foundations underlie our ability to acquire new information, and what principles modulate their efficiency? In How We Learn, Stanislas Dehaene finds the boundary of computer science, neurobiology, and cognitive psychology to explain how learning really works and how to make the best use of the brain’s learning algorithms in our schools and universities, as well as in everyday life and at any age.

The End of Alchemy: Money, Banking, and the Future of the Global Economy

The End of Alchemy: Money, Banking, and the Future of the Global Economy
Author: Mervyn King
Publisher: W. W. Norton & Company
Total Pages: 214
Release: 2016-03-21
Genre: Business & Economics
ISBN: 0393247031

“Mervyn King may well have written the most important book to come out of the financial crisis. Agree or disagree, King’s visionary ideas deserve the attention of everyone from economics students to heads of state.” —Lawrence H. Summers Something is wrong with our banking system. We all sense that, but Mervyn King knows it firsthand; his ten years at the helm of the Bank of England, including at the height of the financial crisis, revealed profound truths about the mechanisms of our capitalist society. In The End of Alchemy he offers us an essential work about the history and future of money and banking, the keys to modern finance. The Industrial Revolution built the foundation of our modern capitalist age. Yet the flowering of technological innovations during that dynamic period relied on the widespread adoption of two much older ideas: the creation of paper money and the invention of banks that issued credit. We take these systems for granted today, yet at their core both ideas were revolutionary and almost magical. Common paper became as precious as gold, and risky long-term loans were transformed into safe short-term bank deposits. As King argues, this is financial alchemy—the creation of extraordinary financial powers that defy reality and common sense. Faith in these powers has led to huge benefits; the liquidity they create has fueled economic growth for two centuries now. However, they have also produced an unending string of economic disasters, from hyperinflations to banking collapses to the recent global recession and current stagnation. How do we reconcile the potent strengths of these ideas with their inherent weaknesses? King draws on his unique experience to present fresh interpretations of these economic forces and to point the way forward for the global economy. His bold solutions cut through current overstuffed and needlessly complex legislation to provide a clear path to durable prosperity and the end of overreliance on the alchemy of our financial ancestors.

The Irrational Economist

The Irrational Economist
Author: Erwann Michel-Kerjan
Publisher: Public Affairs
Total Pages: 338
Release: 2010-01-01
Genre: Business & Economics
ISBN: 1586487809

The authors explore how discoveries in decision sciences will enhance traditional ideas about economics and challenges the conventional wisdom about how to make the right decisions in an emerging new era, in a book that includes informative charts.