How Stories, Statistics and Studies Exploit Our Biases - And What We Can Do About It

May Contain Lies

'Alex Edmans is such a crisp, sharp salutary voice – and a great guide to the bullsh*t of the modern world' Rory Stewart 
'A powerful and punchy explanation of why misinformation is a problem that affects us all' Gillian Tett, Financial Times 
 
A ground-breaking book that reveals why our human biases affect the way we receive and interpret information, with practical suggestions for how to think more critically 
 
Our lives are minefields of misinformation. Stories, statistics and studies are everywhere, allowing people to find evidence to support whatever position they want. Many of these sources are flawed, yet by playing on our emotions and preying on our biases, they can gain widespread acceptance and warp our views. 
 
In this eye-opening book, economist and professor Alex Edmans teaches us how to separate fact from fiction. Using colourful examples – from a wellness guru’s tragic but fabricated backstory, to the blunders that led to the Deepwater Horizon disaster – Edmans highlights the biases that cause us to mistake statements for facts, facts for data, data for evidence, and evidence for proof. 
 
May Contain Lies is an essential read for anyone who wants to make better sense of the world and take clear-eyed decisions. 
 
'A passionate and dispassionate call to truth – and how to achieve it’ Will Hutton, Guardian 
'A timely book and, despite the nerdy statistical theories, is often quite funny' Harry Wallop, The Times

A powerful and punchy explanation of why misinformation is a problem that affects us all - be that in finance, politics, media, business or anywhere else. Edmans offers clear ideas about how to counter this, not just in our own lives but also across society as a whole. Timely and very provocative!

Alex Edmans is such a crisp, sharp salutary voice – and a great guide to the bullsh*t of the modern world

A masterpiece! A must-read book that is both a delight to consume and sure to improve the quality of your thinking’

Professor, The Wharton School, author of How to Change

Mass disinformation and poor understanding of basic statistics are the hallmarks of our 'information age'. Alex Edmans’ book is the much-needed antidote

Author of How the World Really Works and Numbers Don't Lie

Brilliantly researched and written [and] immensely practical in helping guide us through this thicket of (mis)information … I am already drawing on its insights in my everyday decision-making

former Chief Economist at the Bank of England

A passionate and dispassionate call to truth – and how to achieve it - in a world of growing disinformation in which truth and common ground are the casualties

President of the Academy of Social Sciences, author of The State We’re In

A fascinating account of how to navigate through lies and misleading statistics to arrive at a reasonable approximation of the truth. A valuable aid to make sense of our confusing world

Professor at the University of Chicago, former governor of the Reserve Bank of India and Chief Economist of the International Monetary Fund

A hard-hitting book with some great stories

Professor of Statistics and Political Science, Columbia University

A clear-headed guide to the exaggerations, sloppy research and the occasional downright lies peddled by companies, universities, authors and Ted Talk gurus. … It’s a timely book and, despite the nerdy statistical theories, is often quite funny

A road map for how to separate myths from the real thing and come to a better understanding of the world, drawing on the approaches of academic research. [Edmans] is well placed to share what professional thinkers can teach us about examining our subjectivity to think more clearly about topics from income disparity to cancer cures

Entertaining, thorough and full of current examples … It’s excellent!

Recommended Summer Reading, Wall Street Journal

Alex Edmans is Professor of Finance at London Business School. His TED talk 'What to Trust in a Post-Truth World' has been viewed 2 million times. He has also spoken at Davos and Google. In 2013, he was awarded tenure at The Wharton School and in 2021, was named MBA Professor of the Year by Poets and Quants. Edmans writes regularly for the Wall Street Journal, Financial Times and Harvard Business Review. His first book Grow the Pie (Cambridge University Press) was a Financial Times Book of the Year.

A ground-breaking book that reveals why our human biases effect the way we receive and interpret information 
 
Our lives are minefields of misinformation. Statistics, stories and studies lie to us on a daily basis. Not only this but, as Professor Alex Edmans reveals, our brains lie to us too. He argues that we need to acknowledge and understand the role that our own human biases play in interpreting and digesting the information that we consume. It's only when we do, that we can actively resist being manipulated, and make informed choices that improve our lives.

Alex Edmans

An entertaining writer … Edmans summarizes the field of behavioral finance with a refreshingly light touch.

Jason Zweig, financial journalist and columnist for The Wall Street Journal

A maddeningly good read. Both a handy guide to common investment pitfalls and a delightful romp through the weird behaviour and phenomena that dog the supposedly efficient stock market.

Robin Wigglesworth, financial journalist and author of A FABULOUS DEBT

In this smart, engaging book, Edmans offers a masterclass on the psychological forces that shape financial markets and investment decisions. The Madness of Markets is a must-read for anyone interested in behavioural finance.

Katy Milkman, Professor, The Wharton School and author of HOW TO CHANGE

Alex Edmans has an extraordinary knack for turning your preconceptions about business and the economy on their head. The Madness of Markets is no exception. A clear, penetrating look at how even the most rational brains can be swayed by mood and momentum. The ideal user's guide to the next financial bubble.

Ed Conway, financial journalist and author of MATERIAL WORLD

The Madness of Markets is essential reading for anyone who wants to understand how markets work. Grounded in sound research, Alex Edmans entertainingly reveals what drives the market’s mood swings and how to capitalize on the opportunities they create.

Michael Mauboussin, Managing Director, Morgan Stanley and author of MORE THAN YOU KNOW

We sometimes forget that… the line between crowd wisdom and crowd madness is a fine one. This book by Professor Edmans reminds us of that truth, and it is filled with useful insights for investors, while being fun to read. While many behavioural finance books are centered on how investor psychology can skew pricing, this book follows through by offering actionable advice on how investors can take advantage of these mistakes.

Aswath Damodaran, Professor, NYU Stern School of Business and author of THE LITTLE BOOK OF VALUATION

A fascinating and indispensable guide to the hidden psychology that drives markets. Alex Edmans brilliantly reveals how emotion, bias, and inertia lead even the smartest investors astray – and provides practical lessons for investing more wisely.

Annie Duke, decision strategist and author of THINKING IN BETS AND QUITS

At a time when markets often seem to be going mad, amid wild AI hype, Edmans’ book offers a cool-headed compass that enables you to navigate the world of finance and - most importantly - your own emotions. Punchy, witty and provocative, this enables anyone to work out whether they are over or under-reacting to events, and chart a more level-headed approach to reading market signals.

Gillian Tett, Financial Times columnist and author of ANTHRO-VISION

This book serves two purposes: it is an incredibly useful and entertaining handbook - but it is also a warning. Numbers often lie - in large part perhaps we prefer it that way.

Rory Sutherland, Vice Chairman of Ogilvy UK, and author of ALCHEMY

Why Smart Investors Make Crazy Decisions – And How to Exploit Them

"INCREDIBLY USEFUL AND ENTERTAINING" - Rory Sutherland, Vice Chairman of Ogilvy and author of Alchemy 
 
"PUNCHY, WITTY, AND PROVOCATIVE" - Gillian Tett, Financial Times columnist and author of Anthro-Vision 
 
"FASCINATING AND INDISPENSIBLE" - Annie Duke, Decision strategist and author of Thinking in Bets and Quit 
 
------------------------------------------------------ 
Even the smartest investors lose their minds – and their money. 
 
Why do investors chase AI stocks that bleed losses? Why do they ignore glaring opportunities hiding in plain sight? Why does the stock market fall after a football defeat, or rise on a sunny day? 
 
In The Madness of Markets, Professor Alex Edmans reveals how mood, emotion and social contagion lead even seasoned professionals to make irrational decisions. 
 
But their mistakes can become your advantage. Edmans uncovers how you can protect yourself from costly mishaps and capitalise when others misstep. You’ll learn how to think sharper, invest smarter and recognise when the crowd has lost the plot. 
 
From one of the world’s leading finance professors, this is a compelling guide to beating the market in a world that thinks fast, loud and wrong.

Alex Edmans

Praise for The Madness of Markets

An entertaining writer … Edmans summarizes the field of behavioral finance with a refreshingly light touch.

A maddeningly good read. Both a handy guide to common investment pitfalls and a delightful romp through the weird behaviour and phenomena that dog the supposedly efficient stock market.

In this smart, engaging book, Edmans offers a masterclass on the psychological forces that shape financial markets and investment decisions. The Madness of Markets is a must-read for anyone interested in beha ...

An entertaining writer … Edmans summarizes the field of behavioral finance with a refreshingly light touch.

A maddeningly good read. Both a handy guide to common investment pitfalls and a delightful romp through the weird behaviour and phenomena that dog the supposedly efficient stock market.

In this smart, engaging book, Edmans offers a masterclass on the psychological forces that shape financial markets and investment decisions. The Madness of Markets is a must-read for anyone interested in beha ...

An entertaining writer … Edmans summarizes the field of behavioral finance with a refreshingly light touch.

A maddeningly good read. Both a handy guide to common investment pitfalls and a delightful romp through the weird behaviour and phenomena that dog the supposedly efficient stock market.

In this smart, engaging book, Edmans offers a masterclass on the psychological forces that shape financial markets and investment decisions. The Madness of Markets is a must-read for anyone interested in beha ...

Books by Alex Edmans

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