Professor Alex Edmans on Misinformation
Why is misinformation so prevalent, and what can we do about it? On this episode, I’m speaking with Alex Edmans, a London Business School Finance Professor who has written a book called ‘May Contain Lies: How Stories, Statistics, and Studies Exploit Our Biases and What We Can Do About It’. Alex’s areas of focus are purposeful business, sustainable investing, corporate governance, and behavioural finance. He’s also very prepared to use his platform to challenge people who propagate inaccuracies or misleading information. In our discussion, we explore why he wrote his book, the impact of cognitive biases on decision-making, and practical solutions to navigate a world rife with misinformation. You’ll hear about the pitfalls of relying on research produced with an agenda in mind and why we need to be wary when we’re told that a particular academic establishment has published a piece of research. Alex also explains why the popular belief that if you spend 10,000 hours on a particular activity, you’ll have to be skilled at it might not be all it seems and why popular management mantras like ‘start with why’ aren’t as effective as those who propose them might like us to believe. He talks about his own experiences and why his judgement has been just as vulnerable to biases as ours. Find out why cognitive diversity matters and why we shouldn’t listen to everyone’s views. Timestamp Highlights: (Produced by AI)[00:00:00] IntroductionChristian introduces Professor Alex Edmans and discusses his impact on social media and public discourse.[00:01:00] Motivation for Writing "May Contain Lies"Alex explains his transition from academic research to writing about misinformation and the importance of discerning data accuracy over personal biases.[00:02:00] Cognitive Biases and Their ImpactDiscussion on confirmation bias and black-and-white thinking and how they affect our perception of data and evidence.[00:04:00] Personal Experiences with BiasAlex shares personal anecdotes illustrating how even experts can fall prey to biases and misinformation.[00:08:00] The 10,000 Hours RuleA critical look at Malcolm Gladwell's popular concept and its misinterpretations.[00:13:00] Research and Decision-MakingThe importance of scrutinising academic research and the pitfalls of relying solely on endorsements and institutional affiliations.[00:21:00] Statistical LiteracyAlex emphasises the need for statistical literacy from an early age and practical ways to teach it.[00:23:00] Balancing Data and AnecdotesHow to effectively use stories and data to make informed decisions.[00:25:00] Encouraging Cognitive DiversityThe value of different perspectives in decision-making processes and organisational settings.[00:29:00] Flaws in Consultant ResearchCritique of research produced by consultancies like McKinsey and the difference between advocacy and genuine scientific inquiry.[00:36:00] Limits of Cognitive DiversityDiscussing when it might be necessary to draw the line in accepting diverse viewpoints, especially in the context of misinformation.[00:41:00] Societal Solutions to MisinformationProposals for improving transparency in endorsements and the peer review process to combat misinformation.[00:46:00] Role of GatekeepersThe diminishing role of traditional gatekeepers in the age of social media and the importance of self-regulation and critical thinking.[00:55:00] Ethical...