Charlie Munger - 24 Cognitive Biases - Human Misjudgement full speech (Improved Audio & Captioned)

In this monologue, Charlie Munger discusses 24 standard causes of human misjudgment, drawing from psychology and economics to illustrate how cognitive biases affect decision-making. He uses examples ranging from Federal Express's incentive problems to Xerox's sales commissions, and B.F. Skinner's man-with-a-hammer syndrome. Munger explains psychological denial, incentive-caused bias, consistency and commitment tendency, Pavlovian and Skinnerian association, and the Persian messenger syndrome. He also covers contrast-caused distortion, the influence of authority, deprival superreaction syndrome, envy, and the impact of chemical dependency and misgambling compulsion. Munger emphasizes the importance of understanding these biases to improve judgment and decision-making, and he critiques the educational system for not adequately addressing these psychological tendencies. He concludes by examining how these biases combine to create powerful effects, using examples like Tupperware parties and the McDonnell Douglas airliner evacuation disaster, and advocates for incorporating psychology into economics for a more comprehensive understanding of human behavior.