4 thoughts on “The Living Wage and the traps of motivated reasoning”

  1. Posted 03/11/2012 at 14:04 | Permalink

    An excellent article. Maybe it helps explain why so many people ‘know’ that ‘improved’ gender diversity on boards will lead to enhanced corporate performance, while the overwhelming evidence is that the ‘improvement’ leads to a decline in corporate performance. These people continue to ‘know’ what they ‘know’, quite untroubled by the evidence. It’s an example of delusional ‘groupthink’, ironically, and it lies at the heart of government policy. I look forward to debating this issue (and related issues) with the House of Commons select committee on ‘Women in the Workplace’ on November 20.

    Mike Buchanan

    Author of ‘The Glass Ceiling Delusion’


  2. Posted 03/11/2012 at 15:10 | Permalink

    I thought the joke about the £20 note on the pavement (we don’t have sidewalks’ in England!) referred not to economists in general but to the Efficient Market Hypothesis, which somewhat naively implicitly assumed that desirable adjustments occur instantaneously. The other aspect of the EMH worth noting is that it only ‘works’ (if it does) if most people don’t believe it.

  3. Posted 05/11/2012 at 11:03 | Permalink


    That should give EMH advocates great hope, as none of us believe it anymore!

  4. Posted 26/11/2012 at 19:17 | Permalink

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