Famous people are given origin stories – Steve Jobs reached his success because of his abandonment by his birth parents.Most religions explain the creation of earth, of humans, and of the afterlife.Stock market movements are explained like horoscopes, where the same explanation can be used to justify both rises and drops (for instance, the capture of Saddam Hussein was used to explain both the rise and subsequent fall of bond prices). The narrative fallacy helps explain the following: People want to believe a story and will seek cause-and-effect explanations in times of uncertainty. Learn why your brain is so prone to falling for the narrative fallacy and how to counter it. We fall victim to the narrative fallacy because our brains want to make sense of a random world. The narrative fallacy is the tendency to create a story with cause-and-effect explanations out of random details and events. What is narrative fallacy? When and why do you make this fallacy, and how can you avoid it? Like this article? Sign up for a free trial here. Shortform has the world's best summaries of books you should be reading. This article is an excerpt from the Shortform summary of "Thinking, Fast and Slow" by Daniel Kahneman.
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