Imagine an auction for a dollar and the person with the highest bid gets the dollar. However, not only the person with the highest bid must pay the price, also the person with the second highest bid must make a payment. The auction starts at one cent and you will see the price increasing up…
People generally underestimate how their body (or more precisely: their visceral drives, including hunger, thirst, drug cravings, physical pain and mere emotions) is influencing their behavior and decision-making. The legal profession is prone to this bias as much as anyone, as we will discover in the following. While workings of this bias within our private…
You are presented two bags. One contains 700 red chips and 300 blue chips, while the other one is opposite with 700 blue chips and 300 red ones. You are given the choice between the bags. Take one and begin to sample with replacement. In twelve samples, you get 8 reds and 4 blues. What…