Sunday, July 19, 2015

Economist Tyler Cowen writes: "We all overinvest in 
non-diversified mood affiliation portfolios." That's his
way of saying, "We're all biased."  Fifty years ago, it was 
called 'Selective Exposure'. More recently, it was called 
'Confirmation Bias'. Tyler Cowen calls it 'Mood Affiliation'. 
Same concept, different terminology. Reminds me of 
the Gershwin tune: 
"You like potato and I like potahto,
You like tomato and I like tomahto,
Potato, potahto, tomato, tomahto!
Let's call the whole thing off!"

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