HL CHAPTER 3 Now Is the Time to Panic: What to Do When Safety Fails

CHAPTER 3 Now Is the Time to Panic: What to Do When Safety Fails
Note:3@@@@@@@@@@@@@@@SICUREZZA CIBO E GIOCATTOLI

Yellow highlight | Location: 832

panic swept the supermarkets.
Note:2006

Yellow highlight | Location: 833

hospitalized with food poisoning
Note:VECCHIETTA

Yellow highlight | Location: 833

dozens of cases

Yellow highlight | Location: 834

infected by E. coli from eating fresh spinach.
Note:LA VOCE DELLO SPINACIO ASSASSINO

Yellow highlight | Location: 835

Administration issued a general warning

Yellow highlight | Location: 837

The response was dramatic.
Note:OVEREACTION

Yellow highlight | Location: 842

a shipment of 1,002 pounds of spinach harvested in California’s
Note:IL COLPEVOLE

Yellow highlight | Location: 845

The spinach recall was to food what the subprime mortgage crisis was
Note:ANALOGIA

Yellow highlight | Location: 849

The food chain and the financial system
Note:COMPLESSITÀ

Yellow highlight | Location: 853

unacceptable when the public is accustomed to taking its safety for granted,
Note:RIFIUTO E PANI CO

Yellow highlight | Location: 855

not just the fact, but even more the perception,
Note:LA FONTE DEL DANNO

Yellow highlight | Location: 856

studying the potentially carcinogenic properties of Alar, a pesticide
Note:PESTICIDI E CANCRO

Yellow highlight | Location: 858

EPA declared Alar a health risk though not an imminent one,
Note:VERDETTO

Yellow highlight | Location: 860

The reaction to the broadcast was swift.
Note:MELE MALEDETTE

Yellow highlight | Location: 862

yanked all the apples off
Note:ANCHE SE SOTTO I LIVELLI DI GUARDIA

Yellow highlight | Location: 863

“We’re not dealing with reality.”
Note:CONCLUSIONE

Yellow highlight | Location: 871

from a different point of view, the “panic” was rational.
Note:PANICO RAZIONALE

Yellow highlight | Location: 872

substitutes are readily available,
Note:ESITO DELL ABBONDANZA

Yellow highlight | Location: 873

a small inconvenience
Note:RINUNCIARE A MICROSCOPICI PERICOLI

Yellow highlight | Location: 876

panic has a certain logic.
Note:MORALE

Yellow highlight | Location: 899

Industry and regulators have worked hard to foster belief in the complete safety of the industry.
Note:FUNZIONE DLLA REGOLA

Yellow highlight | Location: 900

raise expectations in perverse ways.
Note:EFFETTO COLLATERALE

Yellow highlight | Location: 908

Option two: I flip a coin. Heads, I give you $1,000. Tails, nothing. Which option do you prefer?
Note:TEST. OPZ 1: TI DO 500€

Yellow highlight | Location: 911

someone indifferent to risk would be equally happy

Yellow highlight | Location: 912

choose option one.
Note:LA MAGGIORANZA

Yellow highlight | Location: 913

real people are not “risk neutral”:

Yellow highlight | Location: 914

This observation was first made by the Swiss mathematician Daniel Bernoulli

Yellow highlight | Location: 919

people put enormous value on probabilities of 100 percent.
Note:SINDROME 100%

Yellow highlight | Location: 919

Tversky and Kahneman
Note:LOSS AVERSION IN PRESENZA DI 100

Yellow highlight | Location: 923

a 20 percent chance at $4,000 (expected payoff $800); the second had a 25 percent chance of $3,000 (expected payoff $750).
Note:SPARISCE 100 SPARISCE LA

Yellow highlight | Location: 926

probability of 100 percent has a special appeal.

Yellow highlight | Location: 930

Why do we hate uncertainty?

Yellow highlight | Location: 930

theory of diminishing utility, a fancy way of saying that each dollar of income
Note:RISOSTA ECONOMIISTI

Yellow highlight | Location: 936

“the endowment effect”: people put greater value on something when they own it than when they don’t.
Note:SPIEGA PSICOLOG

Yellow highlight | Location: 939

Uncertainty
Note:TASSA SULLA PSICHE

Yellow highlight | Location: 940

The more imminent and tangible the possibility, the more painful it becomes
Note:IMMINENZA

Yellow highlight | Location: 948

These findings help explain the enormous value we place on safety,
Note:VALORE SICUREZZA

Yellow highlight | Location: 950

why stocks over time return more than bonds.
Note:ALTRO FATTO SPIEGATO

Yellow highlight | Location: 952

The findings explain why we buy insurance, too.
Note:ASSICURAZIOMNI COME BANCO DEL CASINO

Yellow highlight | Location: 953

customer buying a policy is taking an unfair bet.
Note:ANALOGIA

Yellow highlight | Location: 956

Gary Gorton,
Note:BANK PANIC

Yellow highlight | Location: 995

Gorton concluded that panics were about lack of information: