Ambiguity Effect Cartoon

Ambiguity Effect is a cognitive bias. It took me a while to figure out that the probability of getting a yellow (or black) ball is 1/3, so I decided to draw this cartoon so that I don’t forget. But if a Black Swan prepped the box I don’t think it will be 1/3 chance.

In business, if you’d like your customer to go with one option but not the other, give more information to the one you’re trying to sell and not much info for the other one.

The last box is available for download from My Store.

Comics & Cartoons

Why Interest Rates are Lowered

Usually it’s lowered to boost the economy so people are encouraged to borrow money (interest rate is low) and use it.

Who is happy when interest rate gets lowered?

  • debt holders (but credit card interest doesn’t get lowered usually…)
  • bond holders (because bond price has an inverse relationship with interest rate)
  • People getting or renewing a mortgage (because mortgage rates follow the benchmark rate)
  • People getting a loan

This cartoon is on sale at My Store.