Noise
By Cass R. Sunstein, Daniel Kahneman & Olivier Sibony
A Flaw in Human Judgment. Little, Brown Spark, 2021.
Summary of Noise book by Cass R. Sunstein, Daniel Kahneman & Olivier Sibony
A psychological exploration of cognitive bias and noise in the world around us, its negative impact on our decision-making process, and ideas for reducing it.
Chapters in Noise book summary
What do you get from this book? Tips for identifying noise and making better decisions
Noise and bias can lead to unintentional oversights in human judgment
When judges are overwhelmed by noise, they make questionable decisions
Noise audits can help identify disparities among judges and insurance underwriters
It is difficult to reduce error in evaluative and predictive judgments, even with a proper system in place
Mathematical tools show that whether as an individual or a group, human accuracy is flawed
Objective ignorance creates false narratives that propel human error, especially when we don’t have all the data
Our brain is divided into two halves that reflect differently on past events
Conclusion bias, misplaced values, and pattern errors add to the noise we’re already dealing with
Eliminating error requires the use of a decision observer who holds the characteristics of an unbiased judge
Bias comes in many forms and can alter our opinion of facts in spite of evidence to the contrary
Wisdom-of-crowds can provide accurate answers, but only when the questions being asked and the people answering them are unbiased
Nudges, choice architecture, and mediating protocols help us overcome noise and make more practical decisions
Although eliminating noise seems like a good idea, it can backfire when rules become inflexible
Summary of the key insights
Selected critiques in brief
Final word
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Noise — Book Summary Snapshot
Who should read Noise book
- Cognitive psychologists
- lawyers and judges
- behavioral economists
- those who want to deepen their understanding of cognitive bias
- anyone interested in how humans make decisions
About the author of Noise
Cass R. Sunstein
Israeli American Daniel Kahneman is a Nobel Prize-winning economist and psychologist, as well as professor emeritus at Princeton University. His book Thinking, Fast and Slow is internationally renowned. Olivier Sibony is a French professor and consultant serving as Associate Fellow at Oxford University. Cass Sunstein is an American lawyer and was Administrator of the White House Office of Information and Regulatory Affairs during the Obama administration.
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