
Social scientists contend providing more roads and houses leads to "induced demand" and fails to alleviate shortages. The recent presidential election illuminated the problem of confirmation bias, particularly when emotional, political issues are involved. We all want to believe we are rational beings who make decisions based on solid facts and sound reasoning. The truth is that our decisions are often irrational based on faulty reasoning with a self-selected group of facts. One party's fake news is another party's gospel Truth. Take for example the decision to buy a home. Many analytical people convince themselves they want a particular home because the deal makes sense. Perhaps the house is selling below comps, or below rental parity, or it's in an…[READ MORE]