Episode 361: Alex Edmans - Finding "The Truth" in Economics, Finance, and Life

The podcast explores the increasing difficulty of finding truth in an age of abundant information, focusing on how data and statistics can be misrepresented. Alex Edmans, professor of finance at London Business School and author of "May Contain Lies," introduces the "Ladder of Misinference," a framework detailing how information is misrepresented at different levels. Edmans recounts an instance where erroneous evidence influenced the creation of a UK law, highlighting the role of confirmation bias. The discussion covers the 10,000-hour rule and the science of sleep, revealing how these concepts are often based on misrepresented or incomplete data. Strategies to combat confirmation bias, such as seeking disconfirming evidence and acknowledging personal biases, are also discussed.