QOTD 10/20/08

[legalmoose]

Much of economic theory is based on the notion that humans make rational choices (which may mean that economists don't get out much).

From Slate, in an article on why people are so easy to take offense.

Comments

[alfheimr.livejournal.com]

Don't they realize that humans aren't rational so much as rationalizing beings?

[discord35.livejournal.com]

After reading this article (thanks so much for the link), it occurs to me that if our sense of respect, reputation and reciprocity are based on a biological foundation, then that would account for the range of behaviors that we see.

People are different. Genuinely different. Not just in our hair color, height, skin tone or other external characteristics, but in our mental makeups as well. Personality tests attempt to categorize us and we may disagree with their assessments or their rationales, but they demonstrate this fact.

I believe that things like color-blindness, a talent for music or our sexual preference are determined or influenced by genetic factors, which means that they are susceptible to genetic variation.

This genetic variation might explain how some people are touchier than others.

At the same time, our sense of outrage may be cumulative, like our stress response. Repeated hits to our sense of respect, reputation and reciprocity may provoke reactions, even in response to minor offenses.

I'm rambling, but these are some of the thoughts that the article provoked.

[l-strange.livejournal.com]

Funny... I keep going back and forth on the entire 'rational choices' bit as I read more and more economics; yes yes, people aren't rational. At least in the common understanding of the term. However, when you look at the aggregate, trends develop which can not be ignored (eg, people are greedy). So? So maybe the entire idea of people as rational agents makes some sense in macroeconomic theory. However, we usually like to dive down into the micro, the personal... the level of penny pinochle, game-play theory... that macroeconomic stuff pretty much goes to crap.