Thomas Gilovich and Amos Tversky famously claimed that the belief in the Hot Hand in basketball is a cognitive illusion, an instance of the belief in the Law of Small Numbers. They supported this claim with a variety of orthodox statistical tests failing to show any clear evidence of a Hot Hand phenomenon. These researchers neglected to perform any power analysis on this test. Here we show that...

Together with his long-time colleague Daniel Kahneman, Amos Tversky, provided the intellectual infrastructure for contemporary behavioral law and economics. Prospect theory undermines the Coase Theorem, which is the bedrock of traditional law and economics; and the heuristics and biases research questions the fundamental idea of a rational self-interested decisionmaker, which is also challenged...

Acknowledgments: The author wishes to thank Robin Amos for his valuable assistance in the preparation of the manuscript.