The Monty Hall Problem is probably the most counterintuitive puzzle of all time. Even some of the smartest mathematicians initially come up with the wrong answer. For those not aware of it, try playing the game yourself. This NY Times article has a link to an online version of the game (There's a link under the left picture).

The article describes research by a Yale economist who has investigated similar logical fallacies in many past psychology experiments.

It seems like there are similar logical fallacies for investors that may be costing them money. One possible example is hanging on to a losing stock.

 

Submitted: Jun 28, 2008    Views: 122    Comments: 0    Likes: 2   


View Article: http://www.nytimes.com/2008/04/08/science/08tier.html


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