Failing Better: What We Learn by Confronting Risk and Uncertainty

Abstract

When it comes to human health, wealth, and happiness—and to social progress and prosperity more generally—there is no static equilibrium, no final destination. There is only a dynamic and never-ending learning process. Learning from experience provides individuals and organizations with valuable informational inputs regarding which methods work better than others. Even more importantly, learning by doing facilitates social and economic resiliency that helps individuals and organizations develop better coping strategies for when things go wrong. Behavioral theorists and nudge advocates often fail to incorporate these insights into their analysis and policy proposals.