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Ep. 269: Robert Aumann Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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Ernst Smith and Danny Kahneman's Methodology in Economics

The Nobel prize was not given for the conclusions. It was given for the methodology which was new in economics. Ernst Smith, he showed that in exceptional cases, people behave irrationally. He said that people develop rules of thumb. Treske and Kahneman call these rules of thumb heuristics. They usually give optimal results but occasionally misfire when they are misapplied.

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