Stocks & Commodities V. 23:4 (38-41): A Marriage In Artificial Intelligence by D.M. Wong, Ph.D.
Can you really make better decisions with more information? Perhaps artificial intelligence has the answer. Find out how you can develop skills to
There are content-drenched websites such as TheStreet.com, CNBC.com, cbsmarketwatch.com, and so many more. Add to these all the subscription-based
investing magazines and newsletters that are available. Can there be any doubt about our thirst for information?
We tend to assume that people can make better decisions with more information. The logical extension is that people will make even better decisions with even more information. But is that true?
WHAT’S THE CUTOFF POINT?
Do people really make better choices with more information, or can too much information actually undermine the decision-making process? Among economists, it is an axiom that choice is good and more choice is better. Giving buyers more choice means more — and more intense — competition, which lowers prices, raises quality and fosters innovation. In the end, workers are more productive,
consumers are better off and the economy is bigger and more efficient. It’s a lovely theory. … Unfortunately, it turns out not to be true.
Yes, up to a point, choice does enhance efficiency and
consumer welfare. But at some point, there get to be so
many options about what to buy or what career to go into or which mutual fund to invest in that many people make worse decisions than they would if they had fewer choices...
—Washington Post, September 10, 2004