With the constant stream of data about COVID-19, it can be hard to make sense of all the numbers. We look at the base rate fallacy, and how some people are making this mistake when assessing risk.

Forbes contributors publish independent expert analyses and insights. Bryce Hoffman writes about leadership, strategy, and decision making. The gambler’s fallacy is ...

Narrative fallacy is a term introduced by Nassim Taleb [1]. It refers to our difficulty looking at a sequence of facts without connecting them in some way, either to each other or to something else we ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, ...

Economics professors typically cover the “economic way of thinking” in the first chapter of a principles of economics course. After covering 8-10 of the most important guideposts and principles of ...

Do you think good moments and bad moments in life have to even out eventually? Here’s why this line of thinking may be fundamentally flawed. Imagine you are standing at a roulette wheel in a casino.

Dividends give equity investors a less risky way to make money. Dividends received from a stock don't count toward the gains or losses that were made by buying that stock. When bond yields rise, ...