Michel Pireu Columnist

Most of us like to think of ourselves as capable of logical thinking and making sensible choices, of being rational. Some of us might even fancy ourselves as a bit of a homo economicus — the economists’ ideal man, always making the best decisions given the available evidence, even hedging against ignorance and uncertainty.

Unfortunately, this is simply not who we are. As decision-makers, we simplify, misunderstand, lack ability, miscalculate, forget, and make evaluations of alternatives that depend on seemingly irrelevant details.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.