Decision making Quote by Daniel Kahneman
““How do people make the judgments and how do they assign decision weights? We start from two simple answers, then qualify them. Here are the oversimplified answers: People overestimate the probabilities of unlikely events. People overweight unlikely events in their decisions.””
About This Quote
Source Lecture: Behavioral Economics, 2013
People overestimate unlikely events and overweight them in decisions, leading to bias.
In simple terms: We misjudge rare events.
Recognize and correct probability bias.
Themes
Mood
Type
When to use this quote
- investment
- policy making
- personal choices
Key Concepts
Questions to Reflect On
- How do you evaluate low‑probability risks?
- What strategies reduce overestimation?
Bias can cause costly errors.