#boundedrationality — Public Fediverse posts
Live and recent posts from across the Fediverse tagged #boundedrationality, aggregated by home.social.
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Choice Architecture in Occupational Choices
http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0255_lhwpaper.pdf
This study uses a Swiss job board to analyze how rank order and design influence high-stakes occupational choices. Higher rankings increased applications, especially for high-paying and gender-congruent occupations. Users interpreted rank to justify choices aligning with identity, providing field evidence for motivated reasoning. An interactive, visually enriched interface redesign boosted applications and watch list usage. Results show that reducing cognitive load expands the variety of options individuals consider and remember.
#choicearchitecture #motivatedreasoning #laborEconomics #jobtech #ExperimentalEcon
#BoundedRationality -
Choice Architecture in Occupational Choices
http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0255_lhwpaper.pdf
This study uses a Swiss job board to analyze how rank order and design influence high-stakes occupational choices. Higher rankings increased applications, especially for high-paying and gender-congruent occupations. Users interpreted rank to justify choices aligning with identity, providing field evidence for motivated reasoning. An interactive, visually enriched interface redesign boosted applications and watch list usage. Results show that reducing cognitive load expands the variety of options individuals consider and remember.
#choicearchitecture #motivatedreasoning #laborEconomics #jobtech #ExperimentalEcon
#BoundedRationality -
The Legacy of Daniel Kahneman https://ejpe.org/journal/article/view/1075/753
by Gerd Gigerenzer
#BoundedRationality
#economics #Psychology #heuristics #Biases #statisticalThinking -
The Legacy of Daniel Kahneman https://ejpe.org/journal/article/view/1075/753
by Gerd Gigerenzer
#BoundedRationality
#economics #Psychology #heuristics #Biases #statisticalThinking -
Generative AI for Analysts https://d.repec.org/n?u=RePEc:arx:papers:2512.19705&r=&r=ain
#AI transforms the information production process: more, faster, balanced, and less useful.
"…forecast errors rise by 59% as AI-assisted reports convey a more balanced mix of positive and negative information that is harder to synthesize
…
As a result of increasing synthesis cost, investors also react less to the signals in the AI-assisted reports. Taken together, these results suggest that AI expands information supply faster than humans can synthesize it, making information synthesis cost the dominant force behind the observed accuracy decline."
#BoundedRationality -
Generative AI for Analysts https://d.repec.org/n?u=RePEc:arx:papers:2512.19705&r=&r=ain
#AI transforms the information production process: more, faster, balanced, and less useful.
"…forecast errors rise by 59% as AI-assisted reports convey a more balanced mix of positive and negative information that is harder to synthesize
…
As a result of increasing synthesis cost, investors also react less to the signals in the AI-assisted reports. Taken together, these results suggest that AI expands information supply faster than humans can synthesize it, making information synthesis cost the dominant force behind the observed accuracy decline."
#BoundedRationality -
Delegating in the Age of AI: Preferences for Decision Autonomy https://d.repec.org/n?u=RePEc:rco:dpaper:558&r=&r=eur
"… participants systematically underutilize both #AI and human agents, even when those agents outperform them. Despite a general hesitancy to delegate, we observe a clear preference for delegating to AI rather than human agents, a behavioral pattern that remains consistent across both decision domains and architectures
… suggesting that algorithm aversion stems primarily from a broader aversion to relinquishing control rather than from specific distrust towards AI
… If individuals are driven primarily by general reluctance to relinquish control rather than specific distrust in AI, then #transparency alone, focused narrowly on increasing #trust in AI, will likely fall short of overcoming this barrier."
#ExperimentalEcon #BoundedRationality -
Delegating in the Age of AI: Preferences for Decision Autonomy https://d.repec.org/n?u=RePEc:rco:dpaper:558&r=&r=eur
"… participants systematically underutilize both #AI and human agents, even when those agents outperform them. Despite a general hesitancy to delegate, we observe a clear preference for delegating to AI rather than human agents, a behavioral pattern that remains consistent across both decision domains and architectures
… suggesting that algorithm aversion stems primarily from a broader aversion to relinquishing control rather than from specific distrust towards AI
… If individuals are driven primarily by general reluctance to relinquish control rather than specific distrust in AI, then #transparency alone, focused narrowly on increasing #trust in AI, will likely fall short of overcoming this barrier."
#ExperimentalEcon #BoundedRationality -
One Sentence at a Time: A Quantitative #History of Rationality in Economic Thought https://d.repec.org/n?u=RePEc:osf:socarx:38na2_v1&r=&r=big
"… Combining large language model–based semantic analysis with bibliometric and network methods, we identify and cluster discussions of #rationality across time and scales, such as the circulation of #boundedRationality and the emergence of #behavioralEconomics."
#llm #het #EconomicThought -
One Sentence at a Time: A Quantitative #History of Rationality in Economic Thought https://d.repec.org/n?u=RePEc:osf:socarx:38na2_v1&r=&r=big
"… Combining large language model–based semantic analysis with bibliometric and network methods, we identify and cluster discussions of #rationality across time and scales, such as the circulation of #boundedRationality and the emergence of #behavioralEconomics."
#llm #het #EconomicThought -
Buyer Beware: Star Ratings Actually Steer Us Away From the Best Shopping Deals
When reviewers consider prices while rating products, there’s a tendency to downgrade the highest-quality yet pricier items https://archive.ph/2025.12.21-031310/https://www.wsj.com/business/retail/star-ratings-online-shopping-deals-2fef84ab
#BoundedRationality -
Buyer Beware: Star Ratings Actually Steer Us Away From the Best Shopping Deals
When reviewers consider prices while rating products, there’s a tendency to downgrade the highest-quality yet pricier items https://archive.ph/2025.12.21-031310/https://www.wsj.com/business/retail/star-ratings-online-shopping-deals-2fef84ab
#BoundedRationality -
Two #books for the reading list
Decisions, Decisions https://3quarksdaily.com/3quarksdaily/2026/01/decisions-decisions.html
#decisionMaking #BoundedRationality -
Two #books for the reading list
Decisions, Decisions https://3quarksdaily.com/3quarksdaily/2026/01/decisions-decisions.html
#decisionMaking #BoundedRationality -
The Modern Peril of the Availability Heuristic https://www.behavioraleconomics.com/the-modern-peril-of-the-availability-heuristic/
"We now live in an era of informational abundance. The problem is no longer insufficient information, but rather too much of it..…'UnAvailability Bias’: the tendency to treat the absence of expected information as evidence that a phenomenon does not exist, while failing to consider alternative explanations rooted in institutional, legal, or cognitive constraints.
We still believe that what is more available is more plausible. But humans have added a new rule: what is unavailable is impossible. A reversed availability bias."
#BoundedRationality -
The Modern Peril of the Availability Heuristic https://www.behavioraleconomics.com/the-modern-peril-of-the-availability-heuristic/
"We now live in an era of informational abundance. The problem is no longer insufficient information, but rather too much of it..…'UnAvailability Bias’: the tendency to treat the absence of expected information as evidence that a phenomenon does not exist, while failing to consider alternative explanations rooted in institutional, legal, or cognitive constraints.
We still believe that what is more available is more plausible. But humans have added a new rule: what is unavailable is impossible. A reversed availability bias."
#BoundedRationality -
The Great Power Shift: How Intelligent Choice Architectures Rewrite Decision Rights
https://archive.ph/7vnirThe increasing use of AI-powered "intelligent choice architectures" (ICAs) in organizations is transforming how #decisionRights, #power dynamics, and decision-making practices are allocated and structured.
As ICAs become more sophisticated, there are three key shifts occurring: power flows to the human and machine architects of these choice environments, network effects amplify the decision intelligence of ICAs, and the real-time optimization capabilities of ICAs redefine authority and oversight.
To address the risks of the "learning-authority dilemma" where ICAs exceed their granted decision rights, organizations need to establish dynamic governance frameworks that systematically evaluate ICA capabilities and intentionally expand their authority while maintaining oversight.
Leaders must become accountable not just for individual decisions, but for the quality of the ICA systems they create.
The article highlights the need to proactively address decision rights, power structures, and #decisionMaking practices as #AI driven #choiceArchitecture become more prominent in enterprises.
#BoundedRationality #AgenticAI
#AIGovernance #AiEthics #accountability -
The Great Power Shift: How Intelligent Choice Architectures Rewrite Decision Rights
https://archive.ph/7vnirThe increasing use of AI-powered "intelligent choice architectures" (ICAs) in organizations is transforming how #decisionRights, #power dynamics, and decision-making practices are allocated and structured.
As ICAs become more sophisticated, there are three key shifts occurring: power flows to the human and machine architects of these choice environments, network effects amplify the decision intelligence of ICAs, and the real-time optimization capabilities of ICAs redefine authority and oversight.
To address the risks of the "learning-authority dilemma" where ICAs exceed their granted decision rights, organizations need to establish dynamic governance frameworks that systematically evaluate ICA capabilities and intentionally expand their authority while maintaining oversight.
Leaders must become accountable not just for individual decisions, but for the quality of the ICA systems they create.
The article highlights the need to proactively address decision rights, power structures, and #decisionMaking practices as #AI driven #choiceArchitecture become more prominent in enterprises.
#BoundedRationality #AgenticAI
#AIGovernance #AiEthics #accountability -
Reinterpreting Delay and #Procrastination https://arxiv.org/pdf/2411.11828
"Near the #deadline, the agent feels increasing pressure to spend resources as quickly as possible. Because they have some liquidity, the agent exhibits both correlation aversion and monotonicity with respect to payment timing. Connecting risk and time is sensible, and doing so produces a model of an agent who procrastinates because they misperceive their own utility function or the nature of time passing. These solution properties describe an agent who is very aware of the passage of time and plans accordingly to meet deadline pressure"
#BoundedRationality -
Reinterpreting Delay and #Procrastination https://arxiv.org/pdf/2411.11828
"Near the #deadline, the agent feels increasing pressure to spend resources as quickly as possible. Because they have some liquidity, the agent exhibits both correlation aversion and monotonicity with respect to payment timing. Connecting risk and time is sensible, and doing so produces a model of an agent who procrastinates because they misperceive their own utility function or the nature of time passing. These solution properties describe an agent who is very aware of the passage of time and plans accordingly to meet deadline pressure"
#BoundedRationality -
The Subtlety of Optimal Paternalism in a Population with Bounded Rationality https://arxiv.org/pdf/2410.13658
"… optimal utilitarian policy in a heterogeneous population with bounded rationality is highly context specific
…determination of an optimal policy requires the planner to have considerable knowledge of population preferences and behavior. The identification problem is yet more severe when decision makers may be boundedly rational
… utilitarian planners with incomplete knowledge of population preferences and deviations from complete rationality should not seek to optimize policy invoking assumptions that lack credibility
… Planners should recognize their own #boundedRationality, stemming from incompleteness of their knowledge of population preferences and behavior
… pessimistic about the feasibility of credible implementation of optimal #paternalism. Even when heterogeneous agents are completely rational, revealed preference analysis commonly requires unrealistically strong assumptions to point-identify population distributions of utility functions"
#BehavioralEconomics -
The Subtlety of Optimal Paternalism in a Population with Bounded Rationality https://arxiv.org/pdf/2410.13658
"… optimal utilitarian policy in a heterogeneous population with bounded rationality is highly context specific
…determination of an optimal policy requires the planner to have considerable knowledge of population preferences and behavior. The identification problem is yet more severe when decision makers may be boundedly rational
… utilitarian planners with incomplete knowledge of population preferences and deviations from complete rationality should not seek to optimize policy invoking assumptions that lack credibility
… Planners should recognize their own #boundedRationality, stemming from incompleteness of their knowledge of population preferences and behavior
… pessimistic about the feasibility of credible implementation of optimal #paternalism. Even when heterogeneous agents are completely rational, revealed preference analysis commonly requires unrealistically strong assumptions to point-identify population distributions of utility functions"
#BehavioralEconomics -
What the marshmallow test got wrong about child psychology https://psyche.co/ideas/what-the-marshmallow-test-got-wrong-about-child-psychology
"… once other factors are taken into account, the marshmallow test loses its predictive power.
… the next time you hear about a flashy ‘new’ skill that has the potential to change everything, you should react with a healthy dose of scepticism that #psychology is unlikely to produce easy answers"
#BoundedRationality #BehavioralEconomics #selfControl #delayedGratification -
What the marshmallow test got wrong about child psychology https://psyche.co/ideas/what-the-marshmallow-test-got-wrong-about-child-psychology
"… once other factors are taken into account, the marshmallow test loses its predictive power.
… the next time you hear about a flashy ‘new’ skill that has the potential to change everything, you should react with a healthy dose of scepticism that #psychology is unlikely to produce easy answers"
#BoundedRationality #BehavioralEconomics #selfControl #delayedGratification -
Experimental Evidence on Attitudes Toward Inequality and Fairness https://www.annualreviews.org/content/journals/10.1146/annurev-economics-073124-083232
WP: https://www.danielweishaar.net/files/AHW2024_ExperimentalEvidence.pdf
"Although inequality aversion seems important in some contexts– particularly where resources are “manna from heaven”, many experiments also reveal #inequality acceptance, particularly in situations where available resources are linked to the discretionary production choices of individuals. Many people reward effort or productivity when making distributive choices, i.e., they are choice egalitarian or meritocratic. However, across the contexts that we have considered, there are also other prevalent #fairness positions, such as egalitarians, who object to inequalities regardless of how they come about, and libertarians, who accept market allocations and object to redistribution regardless of how inequality comes about."
#ExperimentalEcon #BoundedRationality -
Experimental Evidence on Attitudes Toward Inequality and Fairness https://www.annualreviews.org/content/journals/10.1146/annurev-economics-073124-083232
WP: https://www.danielweishaar.net/files/AHW2024_ExperimentalEvidence.pdf
"Although inequality aversion seems important in some contexts– particularly where resources are “manna from heaven”, many experiments also reveal #inequality acceptance, particularly in situations where available resources are linked to the discretionary production choices of individuals. Many people reward effort or productivity when making distributive choices, i.e., they are choice egalitarian or meritocratic. However, across the contexts that we have considered, there are also other prevalent #fairness positions, such as egalitarians, who object to inequalities regardless of how they come about, and libertarians, who accept market allocations and object to redistribution regardless of how inequality comes about."
#ExperimentalEcon #BoundedRationality -
Noise and Bias: The Cognitive Roots of Economic Errors https://d.repec.org/n?u=RePEc:lan:wpaper:423483206&r=&r=exp
"… formalizes the idea that decision makers might follow a mixture of rules of behavior combining cognitively imprecise value maximization and computationally simpler shortcuts.
… findings suggest that neither cognitive imprecision nor multiplicity of behavioral rules suffice to explain received patterns in economic decision making.… jointly modeling (cognitive) noise in value maximization and #biases arising from simpler, cognitive shortcuts delivers a unified framework which can parsimoniously explain deviations from normative prescriptions across domains."
#BoundedRationality #heuristics #ExperimentalEcon -
Noise and Bias: The Cognitive Roots of Economic Errors https://d.repec.org/n?u=RePEc:lan:wpaper:423483206&r=&r=exp
"… formalizes the idea that decision makers might follow a mixture of rules of behavior combining cognitively imprecise value maximization and computationally simpler shortcuts.
… findings suggest that neither cognitive imprecision nor multiplicity of behavioral rules suffice to explain received patterns in economic decision making.… jointly modeling (cognitive) noise in value maximization and #biases arising from simpler, cognitive shortcuts delivers a unified framework which can parsimoniously explain deviations from normative prescriptions across domains."
#BoundedRationality #heuristics #ExperimentalEcon -
The Benefits and Dangers of #DecisionMmaking by Algorithm https://conversableeconomist.com/2025/03/27/the-benefits-and-dangers-of-decision-making-by-algorithm/
"Even if the #algorithm does a better job than most humans, some humans will do better than the algorithm.
The gain from using algorithms in many contexts is relatively small in percentage terms, although a small percentage gain applied to a large number of people can certainly be meaningful.
People are more unforgiving of algorithmic error than of human error.
Greater complexity will limit the benefit of an algorithm.
Algorithms are not good, and perhaps cannot be good, at what are sometimes called path-dependent events"
#BoundedRationality #bias #heuristic -
The Benefits and Dangers of #DecisionMmaking by Algorithm https://conversableeconomist.com/2025/03/27/the-benefits-and-dangers-of-decision-making-by-algorithm/
"Even if the #algorithm does a better job than most humans, some humans will do better than the algorithm.
The gain from using algorithms in many contexts is relatively small in percentage terms, although a small percentage gain applied to a large number of people can certainly be meaningful.
People are more unforgiving of algorithmic error than of human error.
Greater complexity will limit the benefit of an algorithm.
Algorithms are not good, and perhaps cannot be good, at what are sometimes called path-dependent events"
#BoundedRationality #bias #heuristic -
Summer Institute on #BoundedRationality
#DecisionMaking in a Digital World | June 17–25, 2025 | MPIB, Berlin, Germany
https://www.mpib-berlin.mpg.de/research/research-centers/adaptive-rationality/summer-institute
#SocialRationality #EcologicalRationality -
Summer Institute on #BoundedRationality
#DecisionMaking in a Digital World | June 17–25, 2025 | MPIB, Berlin, Germany
https://www.mpib-berlin.mpg.de/research/research-centers/adaptive-rationality/summer-institute
#SocialRationality #EcologicalRationality -
Overconfidence and gender gaps in career outcomes: insights from a promotion signaling model https://d.repec.org/n?u=RePEc:hhs:ifauwp:2024_021&r=&r=lma
"… male #overconfidence, combined with competitive workplace incentives affects gender equality in the labor market: overconfident workers exert more effort, are more likely to be promoted, and ultimately earn higher wages across job levels despite having lower expected ability conditional on promotion. The higher effort not only increases their chances of promotion, but also contributes to human capital accumulation through learning-by-doing, leading to higher productivity
… overconfidence can be a double-edged sword: while it can lead to higher promotions and wages (serving as a “self-serving bias”), it also imposes higher effort costs and discourages peers
… policies aimed at limiting working hours could help mitigate the effects of overconfidence, potentially reducing the gender gap in career progression and #wages."
#LaborMarkets #BoundedRationality #gpg -
Overconfidence and gender gaps in career outcomes: insights from a promotion signaling model https://d.repec.org/n?u=RePEc:hhs:ifauwp:2024_021&r=&r=lma
"… male #overconfidence, combined with competitive workplace incentives affects gender equality in the labor market: overconfident workers exert more effort, are more likely to be promoted, and ultimately earn higher wages across job levels despite having lower expected ability conditional on promotion. The higher effort not only increases their chances of promotion, but also contributes to human capital accumulation through learning-by-doing, leading to higher productivity
… overconfidence can be a double-edged sword: while it can lead to higher promotions and wages (serving as a “self-serving bias”), it also imposes higher effort costs and discourages peers
… policies aimed at limiting working hours could help mitigate the effects of overconfidence, potentially reducing the gender gap in career progression and #wages."
#LaborMarkets #BoundedRationality #gpg -
@turvanen Uskomusten ja toiminnan välimatka on toisinaan pitkä ja mutkikas. SEP:ssa äskettäin uusittu entry tavoittaa siitä vain siivun, https://plato.stanford.edu/entries/bounded-rationality/, ja viime vuonna perusteellisesti uusittu Action RE:yineen kaikkineenkin lähinnä kontekstoi, https://plato.stanford.edu/entries/action/. Kysymys siitä, miksi tiedosta (ja tahdosta) ei seuraa tietynlaista toimintaa, on liian iso tähän vuodenaikaan.
Se on varmaan totta, että kukaan ei halua tauteja läheiselleen, ja useimmat kai uskovat, että voisi tartuttaa, ja että sitä voisi ainakin hillitä, ellei aivan estää. Samaten aika monet, ellei peräti useimmat, arvelevat voittavansa lotossa, jos käyttäytymisestä päättelisi.
Itse en useinkaan tiedä, mistä ohjaudun, vaikka yhä osaan (oheismateriaalin tai konteksti-vihjeiden avulla) perustella toimintaani pätevästi, jos sille päälle satun. Kliseisiin en kuitenkaan sorru, ja mieluummin jatkan ymmälläni.
#rationality #reason #knowledge #boundedRationality #action #toiminta #covid
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Careless thinking: A theory of bad thinking https://nathanpmyoung.substack.com/p/careless-thinking
"Much thinking is inattentive and error prone, without updating, including for very important topics.Longform articles, reports, government decision making, twitter interactions. My theory is that in all these places most thinking is more like “getting it done” than careful sober minded decision making."
#BoundedRationality #attention -
Careless thinking: A theory of bad thinking https://nathanpmyoung.substack.com/p/careless-thinking
"Much thinking is inattentive and error prone, without updating, including for very important topics.Longform articles, reports, government decision making, twitter interactions. My theory is that in all these places most thinking is more like “getting it done” than careful sober minded decision making."
#BoundedRationality #attention -
Worker Beliefs About Outside Options https://microeconomicinsights.org/worker-beliefs-about-outside-options/
"…anchoring & misperceptions about the wage distribution can be a source of #LaborMarkets imperfections
…in standard models, workers are assumed to have perfect information about the wage distribution, their position therein, and hence their outside options
The presence of misperceptions also gives rise to distinct policy remedies, such as #PayTransparency mandates"
#BoundedRationality #wages -
Worker Beliefs About Outside Options https://microeconomicinsights.org/worker-beliefs-about-outside-options/
"…anchoring & misperceptions about the wage distribution can be a source of #LaborMarkets imperfections
…in standard models, workers are assumed to have perfect information about the wage distribution, their position therein, and hence their outside options
The presence of misperceptions also gives rise to distinct policy remedies, such as #PayTransparency mandates"
#BoundedRationality #wages -
This week I explore trust developing through iterative interactions that are shaped by cultural, structural, and relational factors.
#HighTrustEnvironments #Satisficing #BoundedRationality #Leadership #OrganisationalCulture
https://robert.winter.ink/the-speed-of-higher-trust-leaders-part-2/
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This week I explore trust developing through iterative interactions that are shaped by cultural, structural, and relational factors.
#HighTrustEnvironments #Satisficing #BoundedRationality #Leadership #OrganisationalCulture
https://robert.winter.ink/the-speed-of-higher-trust-leaders-part-2/
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Fairness in a Society of Unequal Opportunities https://d.repec.org/n?u=RePEc:rco:dpaper:506&r=&r=exp
"…a majority of people are willing to accept #inequality caused by unequal opportunities, a position that markedly contrasts with their responses to inequality caused by #luck
…Americans and right-wing voters exhibiting a greater acceptance of the resulting inequality, reŕecting both differences in #fairness views and attribution biases… "
#ExperimentalEcon #BoundedRationality -
Fairness in a Society of Unequal Opportunities https://d.repec.org/n?u=RePEc:rco:dpaper:506&r=&r=exp
"…a majority of people are willing to accept #inequality caused by unequal opportunities, a position that markedly contrasts with their responses to inequality caused by #luck
…Americans and right-wing voters exhibiting a greater acceptance of the resulting inequality, reŕecting both differences in #fairness views and attribution biases… "
#ExperimentalEcon #BoundedRationality -
The Cognitive Turn in #BehavioralEconomics https://benjamin-enke.com/pdf/Cognitive_turn.pdf
"cognitive simplification strategies can be consolidated into five categories: (i) noisy approximations and resulting behavioral attenuation; (ii) comparative thinking; (iii) reducing cardinality by overweighting what’s salient, gets cued in memory, or is deemed important; (iv) thinking in analogies and categories; and (v) devaluing or shying away from objects one cannot properly evaluate"
#BoundedRationality
#CognitiveEconomics -
The Cognitive Turn in #BehavioralEconomics https://benjamin-enke.com/pdf/Cognitive_turn.pdf
"cognitive simplification strategies can be consolidated into five categories: (i) noisy approximations and resulting behavioral attenuation; (ii) comparative thinking; (iii) reducing cardinality by overweighting what’s salient, gets cued in memory, or is deemed important; (iv) thinking in analogies and categories; and (v) devaluing or shying away from objects one cannot properly evaluate"
#BoundedRationality
#CognitiveEconomics -
Incorporating Conditional #Morality into Economic Decisions https://d.repec.org/n?u=RePEc:tut:cremwp:2024-04&r=&r=exp
"…a moral standard may be a moral imperative, or may be derived from social influences including #mimicry or #fairness considerations resulting from others’ behavior …
Additional #heterogeneity stems from the fact that one’s moral obligation may be either unconditional, or malleable and subject to the influence of others’ behavior."
#BoundedRationality -
Incorporating Conditional #Morality into Economic Decisions https://d.repec.org/n?u=RePEc:tut:cremwp:2024-04&r=&r=exp
"…a moral standard may be a moral imperative, or may be derived from social influences including #mimicry or #fairness considerations resulting from others’ behavior …
Additional #heterogeneity stems from the fact that one’s moral obligation may be either unconditional, or malleable and subject to the influence of others’ behavior."
#BoundedRationality -
This week's second post introduces five characteristics of #boundedRationality and contrasts it with a received Standard Picture of #rationality.
"I suggest that we should sometimes blame the #theory." –David Thorstad, author Inquiry Under Bounds (#OUP 2024), an #openAccess book
#epistemology #cognitiveScience #decisionScience #history #economics #behavioralEconomics #psychology #HerbSimon #EdwardStein #science #philosophyOfScience #philosophy #pragmatism #positivism
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This week's second post introduces five characteristics of #boundedRationality and contrasts it with a received Standard Picture of #rationality.
"I suggest that we should sometimes blame the #theory." –David Thorstad, author Inquiry Under Bounds (#OUP 2024), an #openAccess book
#epistemology #cognitiveScience #decisionScience #history #economics #behavioralEconomics #psychology #HerbSimon #EdwardStein #science #philosophyOfScience #philosophy #pragmatism #positivism
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Mental Models and Learning: The Case of Base-Rate Neglect http://d.repec.org/n?u=RePEc:cdl:ucsdec:qt8cb387t8&r=exp
"…findings suggest mistakes are more likely to be persistent when they are driven by incorrect mental models that miss or misrepresent important aspects of the environment. Such models induce confidence in initial answers, limiting engagement with and #learning from feedback."
#BoundedRationality #attention #ExperimentalEcon -
Mental Models and Learning: The Case of Base-Rate Neglect http://d.repec.org/n?u=RePEc:cdl:ucsdec:qt8cb387t8&r=exp
"…findings suggest mistakes are more likely to be persistent when they are driven by incorrect mental models that miss or misrepresent important aspects of the environment. Such models induce confidence in initial answers, limiting engagement with and #learning from feedback."
#BoundedRationality #attention #ExperimentalEcon -
Are #AI chatbots behaviorally similar to humans?
https://a-ortmann.medium.com/are-ai-chatbots-behaviorally-similar-to-humans-f5bc5bf361bb?
Andreas does not fully agree with https://www.pnas.org/doi/10.1073/pnas.2313925121
and argues "…that this is a mis-specified (not to say: silly) question as it depends on the circumstances in which humans find themselves."I tend to agree with him.
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Are #AI chatbots behaviorally similar to humans?
https://a-ortmann.medium.com/are-ai-chatbots-behaviorally-similar-to-humans-f5bc5bf361bb?
Andreas does not fully agree with https://www.pnas.org/doi/10.1073/pnas.2313925121
and argues "…that this is a mis-specified (not to say: silly) question as it depends on the circumstances in which humans find themselves."I tend to agree with him.
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David Dunning: Overcoming #Overconfidence https://www.openmindmag.org/articles/david-dunning-on-expertise
"On any particular topic, people who are not experts lack the very expertise they need in order to know just how much expertise they lack."HT Timothy Taylor https://conversableeconomist.com/2024/04/17/interview-with-david-dunning-of-dunning-kruger-fame/
#BoundedRationality -
David Dunning: Overcoming #Overconfidence https://www.openmindmag.org/articles/david-dunning-on-expertise
"On any particular topic, people who are not experts lack the very expertise they need in order to know just how much expertise they lack."HT Timothy Taylor https://conversableeconomist.com/2024/04/17/interview-with-david-dunning-of-dunning-kruger-fame/
#BoundedRationality -
Failures in #Kindness
https://www.lesswrong.com/posts/GLpFovxZdwXYwmbkJ/failures-in-kindness
"…doing the other person a favor by being open & flexible
…this is computationally unkind: it offloads all the effort of coming up with ideas & making decisions to the other person. So while it is kind on one level (respecting their object level preferences), it's unkind on another (effort, and respecting their possible meta level preferences about the planning process)."
#BoundedRationality #ComputationalKindness
#choiceArchitecture
#decisionMaking -
Failures in #Kindness
https://www.lesswrong.com/posts/GLpFovxZdwXYwmbkJ/failures-in-kindness
"…doing the other person a favor by being open & flexible
…this is computationally unkind: it offloads all the effort of coming up with ideas & making decisions to the other person. So while it is kind on one level (respecting their object level preferences), it's unkind on another (effort, and respecting their possible meta level preferences about the planning process)."
#BoundedRationality #ComputationalKindness
#choiceArchitecture
#decisionMaking -
The Missing Type: Where are the Inequality Averse (Students)?
https://dx.doi.org/10.2139/ssrn.4767248
"Younger & more educated individuals not only tend to have lower degrees of other-regardingness but this reduction in other-regardingness nullifies behindness aversion among students. Differences in income do not seem to affect #socialPreferences.
…provide a new cautionary tale that insights from student populations might not extrapolate to the general population."
#ExperimentalEcon #boundedRationality -
The Missing Type: Where are the Inequality Averse (Students)?
https://dx.doi.org/10.2139/ssrn.4767248
"Younger & more educated individuals not only tend to have lower degrees of other-regardingness but this reduction in other-regardingness nullifies behindness aversion among students. Differences in income do not seem to affect #socialPreferences.
…provide a new cautionary tale that insights from student populations might not extrapolate to the general population."
#ExperimentalEcon #boundedRationality -
Biased expectations and labor market outcomes: Evidence from German survey data and implications for the East-West wage gap http://d.repec.org/n?u=RePEc:zbw:rwirep:282989&r=lma
"East Germans are significantly more pessimistic than West Germans.… Removing the biases could substantially increase #wages and expected lifetime income in East Germany. The difference in biases in labor market expectations explains part of the East-West German wage gap."
#LaborMarkets #BoundedRationality