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Thaler and Sunstein argue that people make systematic errors in making certain kinds of decisions. Give...

Thaler and Sunstein argue that people make systematic errors in making certain kinds of decisions. Give one example and briefly explain.

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Answer #1

Soln. Systematic errors in certain kind of decision is mostly caused by lack of proper and adequate information. One example of such systematic error is casting vote to wrong candidate. Based on the biased information from other people, some time individual does not do proper research and analysis about the election candidate, and tends to caste vote to the candidate, who does not turned out to be correct in the future. So, this mistake was caused mostly because of the lack of information and biased mind set.

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