Seeing through cognitive traps (with Alex Edmans)

Clearer Thinking with Spencer Greenberg

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How do we distinguish correlation from causation in organizational success? How common is it to mistake luck or data mining for genuine effects in research findings? What are the challenges in interpreting ESG (Environmental, Social, Governance) criteria? Why is governance considered distinct from environmental and social impact? How should uncertainty in climate science affect our policy choices? Are regulation and free markets really at odds, or can they be mutually reinforcing? How does economic growth generated by markets fund social programs and environmental protection? How does “publish or perish” culture shape scientific research and incentives? What psychological and neuroscientific evidence explains our tendency toward confirmation bias? Will LLMs exacerbate or mitigate cognitive traps? How do biases shape popular narratives about diversity and corporate purpose? How can we balance vivid stories with rigorous data to better understand the world?

Alex Edmans FBA FAcSS is Professor of Finance at London Business School. Alex has a PhD from MIT as a Fulbright Scholar, was previously a tenured professor at Wharton, and an investment banker at Morgan Stanley. He serves as non-executive director of the Investor Forum and on Morgan Stanley’s Institute for Sustainable Investing Advisory Board, Novo Nordisk’s Sustainability Advisory Council, and Royal London Asset Management’s Responsible Investment Advisory Committee. He is a Fellow of the British Academy and a Fellow of the Academy of Social Sciences.

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Read the full transcript here.

How do we distinguish correlation from causation in organizational success? How common is it to mistake luck or data mining for genuine effects in research findings? What are the challenges in interpreting ESG (Environmental, Social, Governance) criteria? Why is governance considered distinct from environmental and social impact? How should uncertainty in climate science affect our policy choices? Are regulation and free markets really at odds, or can they be mutually reinforcing? How does economic growth generated by markets fund social programs and environmental protection? How does “publish or perish” culture shape scientific research and incentives? What psychological and neuroscientific evidence explains our tendency toward confirmation bias? Will LLMs exacerbate or mitigate cognitive traps? How do biases shape popular narratives about diversity and corporate purpose? How can we balance vivid stories with rigorous data to better understand the world?

Alex Edmans FBA FAcSS is Professor of Finance at London Business School. Alex has a PhD from MIT as a Fulbright Scholar, was previously a tenured professor at Wharton, and an investment banker at Morgan Stanley. He serves as non-executive director of the Investor Forum and on Morgan Stanley’s Institute for Sustainable Investing Advisory Board, Novo Nordisk’s Sustainability Advisory Council, and Royal London Asset Management’s Responsible Investment Advisory Committee. He is a Fellow of the British Academy and a Fellow of the Academy of Social Sciences.

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2025-09-03 91 min
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