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Bounded Rationality and Beyond
News on the effects of bounded rationality in economics and business, relationships and politics
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Daniel Kahneman Explains The Machinery of Thought | Farnam Street

Daniel Kahneman Explains The Machinery of Thought | Farnam Street | Bounded Rationality and Beyond | Scoop.it
Daniel Kahneman dissects the machinery of thought into two agents, system 1 and system two, which respectively produce fast and slow thinking.

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Miklos Szilagyi's curator insight, August 9, 2014 2:07 PM

"One further limitation of System 1 is that it cannot be turned off..." Beside that it's useful...:-)))

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What Behavioural Economics Is Not

What Behavioural Economics Is Not | Bounded Rationality and Beyond | Scoop.it

Behavioural economics is not (a) about controlling behaviour (b) conservative or liberal (c) about irrationality. So what exactly is it?

People are complex; they defy easy summary. Like Walt Whitman, we all contain multitudes. As a discipline, economics has been successful in part because it has ignored this complexity. Instead it has focused on explaining the institutions in which decisions are made — with institutions ranging from capitalism to communism, from perfect competition to monopolies, and from rock-paper-scissors to the prisoner’s dilemma. Behavioral economics differs from standard economics in that it uses a more realistic (and more complicated) model for people; it differs from psychology in that it maintains the focus on institutions and the contexts in which decisions are made. Behavioral economists study how the context of decisions interacts with our expanding understanding of human psychology. By combining the insights from these two very different perspectives, behavioral economists have been able to reveal new depths in ourselves.


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8 Things We Simply Don't Understand About the Human Brain

8 Things We Simply Don't Understand About the Human Brain | Bounded Rationality and Beyond | Scoop.it
Despite all the recent advances in the cognitive and neurosciences, there’s still much about the human brain that we do not know. Here are 8 of the most baffling problems currently facing science.

Virtually every animal sleeps, which is crazy if you think about it. Sleep must be incrediblyimportant because evolution hasn’t devised a way around it. It’s a condition in which conscious awareness has been (for the most part) shut off, leaving us unaware of our surroundings and completely vulnerable. Deprived of enough sleep, we would eventually die.

So what’s the purpose behind it? It could be a way to recharge the brain and replenish the body’s energy stores. Or, it could help us consolidate and store important memories whilethrowing out the neural nonsense we don’t need. And indeed, there seems to be some credence to the idea that sleep helps us encode our long-term memories.

 
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Philippe Vallat's curator insight, July 30, 2013 5:05 AM

A good lesson of humility :-)

Bernard Ryefield's curator insight, July 30, 2013 7:15 AM

Science is always advancing (and putting itself in question), just too slowly for some; give it time (and efforts). The article is presenting some of the most interesting questions in brain science, some of them having huge implication: what if there is no free will ? In that case, better have philosophical arguments ready to answer this question: what we collectively do of it (just think about the judicial system) ?

Ruth Obadia's curator insight, August 9, 2013 10:42 AM

Neuroscientists cannot explain how incoming sensations get routed around such that they can be translated into subjective impressions like taste, color, or pain. Or how we can conjure a mental image in our minds on demand.

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Your Backup Brain | Psychology Today

Your Backup Brain | Psychology Today | Bounded Rationality and Beyond | Scoop.it
There's a "second brain" in your stomach, and it influences mood, what you eat, all kinds of disease, and decision-making. And you thought it was all in your head.

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Be suspicious of stories

Be suspicious of stories | Bounded Rationality and Beyond | Scoop.it

 Like all of us, economist Tyler Cowen loves a good story. But in this intriguing talk, he asks us to step away from thinking of our lives -- and our messy, complicated irrational world -- in terms of a simple narrative.
(Filmed at TEDxMidAtlantic.)


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Philippe Vallat's curator insight, July 15, 2014 3:47 AM

About stories, mental laziness, cognitive biases, manipulation

Pierre Gauthier's curator insight, July 15, 2014 9:46 AM

Anyone who practices mindfulness is very intimately familiar with "the storyteller". What Tyler Cowan talks about in the excellent TEDx talk could be quite upsetting to some people who haven't been deep in their practice. Very good! 

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The Biology and Psychology of Ethical Behavior

Is morality culturally determined and relative, an evolved social contract that is absolute, or something else? In this session, we examine the biology of carin

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FastTFriend's curator insight, September 29, 2013 3:50 AM

Being Human, a daylong exploration of human nature in the light of cutting edge science, philosophy, and evolution. (more vids. available).

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Illusory Correlations: When The Mind Makes Connections That Don’t Exist

Illusory Correlations: When The Mind Makes Connections That Don’t Exist | Bounded Rationality and Beyond | Scoop.it
Why do CEOs who excel at golf get paid more, despite poorer stock market performance?

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luiy's curator insight, May 10, 2013 5:10 PM

To see how easily the mind jumps to the wrong conclusions, try virtually taking part in a little experiment...

 

...imagine that you are presented with information about two groups of people about which you know nothing. Let's call them the Azaleans and the Begonians.

 

For each group you are given a list of positive and negative behaviours. A good one might be: an Azalean was seen helping an old lady across the road. A bad one might be: a Begonian urinated in the street.

So, you read this list of good and bad behaviours about the Azaleans and Begonians and afterwards you make some judgements about them. How often do they perform good and bad behaviours and what are they?

What you notice is that it's the Begonians that seem dodgy. They are the ones more often to be found shoving burgers into mailboxes and ringing doorbells and running away. The Azaleans, in contrast, are a sounder bunch; certainly not blameless, but overall better people.

 

While you're happy with the judgement, you're in for a shock. What's revealed to you afterwards is that actually the ratio of good to bad behaviours listed for both the Azaleans and Begonians was exactly the same. For the Azaleans 18 positive behaviours were listed along with 8 negative. For the Begonians it was 9 positive and 4 negative.

In reality you just had less information about the Begonians. What happened was that you built up an illusory connection between more frequent bad behaviours and the Begonians; they weren't more frequent, however, they just seemed that way.

When the experiment is over you find out that most other people had done exactly the same thing, concluding that the Begonians were worse people than the Azaleans.

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Cognitive Biases in Times of Uncertainty

Cognitive Biases in Times of Uncertainty | Bounded Rationality and Beyond | Scoop.it
We live in a world of increasing pressure and uncertainty, driven in large part by digital technology infrastructures. These marvelous infrastructures bring us unprecedented connectivity and opportunities to better ourselves.

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