Bounded Rationality and Beyond

We found this video over on Katya Anderson’s blog the other day and found it simply fascinating and extremely informative. It’s a session from the 2Behavioral economic theories contrast with a lot of traditional long standing theories, which state, the simple and compelling idea that we are capable of making the right decision for ourselves. Katya Anderson poses that we are not living in a rational world and thus human decision making is also not rational. The fact is that many of us make irrational decisions all the time whether in our buying habits or within our giving habits.