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October 2024 Archive

Articles published in October 2024

27Total Articles

The Dunning-Kruger Effect

In 1995, McArthur Wheeler robbed two Pittsburgh banks in broad daylight without a disguise. When police showed him surveillance footage, he was genuinely baffled. He had rubbed lemon juice on his face, believing it would make him invisible to cameras. This story prompted David Dunning and Justin Kruger's 1999 study: people with limited knowledge systematically overestimate their competence — because the skills needed to recognize incompetence are the same skills needed to perform competently.

Opportunity Cost: The Price of Every Choice

Opportunity cost is the value of the best alternative you give up. Decca Records turned down the Beatles to save on travel. Kodak invented the digital camera and didn't sell it. Why humans systematically ignore the most important cost in every decision.