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Bounded Rationality and Law | Welcome!

Bounded Rationality and Law | Welcome! | Bounded Rationality and Beyond | Scoop.it

Bounded rationality is the study of the mental shortcuts (i.e., heuristics) that people with limited time, knowledge, or cognitive power use to make decisions; the structure of the environment in which people make decisions; and the match between the two. Forensic psychology is a research endeavour that examines aspects of human behaviour as it relates to law and the legal system.

For research purposes, we view the legal system as a series of consequential decisions made by offenders, victims, witnesses, police officers, lawyers, judges, jurors, probation officers, parole officers, and so on. The research being conducted in this lab integrates the two areas of research by investigating
The evidence that legal agents use simple heuristics to make decisions,
The heuristic mechanisms that are used to search for information or alternatives, stop that search, and make a decision,
When and why heuristics work well (i.e., ecological rationality) and
Conditions under which simple heuristics are used to make decisions

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Congestion in the bathtub

This paper presents a model of urban traffic congestion that allows for hypercongestion. Hypercongestion has fundamental importance for the costs of congestion and the effect of policies such as road pricing, transit provision and traffic management, treated in the paper. In the simplest version of the model, the unregulated Nash equilibrium is also the social optimum among a wide range of potential outcomes and any reasonable road pricing scheme will be welfare decreasing. Large welfare gains can be achieved through road pricing when there is hypercongestion and travelers are heterogeneous.

 

Fosgerau, Mogens (2015): Congestion in the bathtub.

http://mpra.ub.uni-muenchen.de/63029/ ;


Via Complexity Digest
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Scontro settario immaginario: la guerra saudita in Yemen - Limes

Scontro settario immaginario: la guerra saudita in Yemen - Limes | Bounded Rationality and Beyond | Scoop.it
La psicosi della minaccia sciita    La crisi yemenita entra oggi in una nuova fase, probabilmente ancora più cruenta.   L’impegno militare saudita e della coalizione regionale araba viene allo scoperto, dimostrando la natura della posta in gioco nel paese.  Probabilmente Riyad è consapevole che l'Iran ha in Yemen un ruolo minore e una capacità d’influenza che gran parte della comunità internazionale ha esagerato; ma non intende abbassare i toni della bellicosa retorica contro la Repubblica Islamica, temendo una reale saldatura tra le forze sciite della regione.   L’apparentemente inarrestabile avanzata degli Huthi viene considerata adesso dall’Arabia Saudita come un'ulteriore, temibile minaccia, su cui non concedere spazi all’avversario e in funzione della quale chiamare alla mobilitazione tutto l’arco delle alleanze regionali in campo sunnita.  Le monarchie del Golfo senza mezzi termini denunciano l’Iran e l’Onu quali artefici del collasso istituzionale dello Yemen,
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Communication and the Emergence of Collective Behavior in Living Organisms: A Quantum Approach

Abstract

Intermolecular interactions within living organisms have been found to occur not as individual independent events but as a part of a collective array of interconnected events. The problem of the emergence of this collective dynamics and of the correlated biocommunication therefore arises. In the present paper we review the proposals given within the paradigm of modern molecular biology and those given by some holistic approaches to biology. In recent times, the collective behavior of ensembles of microscopic units (atoms/molecules) has been addressed in the conceptual framework of Quantum Field Theory. The possibility of producing physical states where all the components of the ensemble move in unison has been recognized. In such cases, electromagnetic fields trapped within the ensemble appear. In the present paper we present a scheme based on Quantum Field Theory where molecules are able to move in phase-correlated unison among them and with a self-produced electromagnetic field. Experimental corroboration of this scheme is presented. Some consequences for future biological developments are discussed.

 

 

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Il neurosessismo e il cervello delle donne: la nuova frontiera delle discriminazioni di genere.

Il neurosessismo e il cervello delle donne: la nuova frontiera delle discriminazioni di genere. | Bounded Rationality and Beyond | Scoop.it

Katherine Ellison, una giornalista affermata che, prima di sposarsi e avere due figli, faceva la corrispondente dal Sudamerica per il “Miami Herald”quando è rimasta incinta ha pensato con terrore alle cose che si sentono sul cervello delle mamme, che è più lento, che “perde colpi”. E al fatto che le madri, durante e dopo la gravidanza, sarebbero meno presenti a se stesse, nelle attività domestiche così come in quelle lavorative.

Personalmente, io questa non l’avevo mai sentita, eppure sulle donne ne ho sentite tante, ma se l’ha sentita, qualcuno l’avrà detta. Però lei questo “calo di intelletto” non lo avvertiva. Ha cominciato a fare ricerche e ha raccolto le prove scientifiche che il cervello delle mamme è più efficiente. Perché i bambini rappresentano uno straordinario “catalizzatore dell’intelligenza”.

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The Mary Poppins principle: The behavioural economics of should and sugar

The Mary Poppins principle: The behavioural economics of should and sugar | Bounded Rationality and Beyond | Scoop.it

The character Mary Poppins famously sang "A spoon full of sugar helps the medicine go down" (and I apologise that you'll now have that song in your head all day).

And now there’s some behavioural research which suggests that Mary might not only have convinced the kids to swallow their medicine, but been on the money when it comes to getting people to do tough stuff.

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Depression Distorts People's Perception of Time, Study Finds - PsyBlog

Depression Distorts People's Perception of Time, Study Finds - PsyBlog | Bounded Rationality and Beyond | Scoop.it

The curious effect of depression on time perception.

 

Most people experience differences in how time is perceived, with or without depression.

For example, 10 minutes in the dentist’s waiting-room can seem like an hour.

While an enjoyable conversation with a good friend can pass in the blink of an eye.

What a new study finds, though, is that depressed people have a general feeling that time is passing more slowly, or even that it has stopped.

Dr. Daniel Oberfeld-Twistel, one of the study’s authors, said:

“Psychiatrists and psychologists in hospitals and private practices repeatedly report that depressed patients feel that time only creeps forward slowly or is passing in slow motion.

The results of our analysis confirm that this is indeed the case.”

The strange part is what happens when people with depression are asked to judge intervals of time.

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Common and private signals in public goods games with a point of no return

Abstract: We provide experimental evidence on behavior in a public goods game featuring a so-called point of no return, meaning that if the group’s total contribution falls below this point all payoffs are reduced. Participants receive either common or private signals about the point of no return, and experience either high or low reductions in payoffs if insufficient contributions are made. Our data reveal that, as expected, contributions are higher if the cost of not reaching the threshold is high than if it is low. High signal values discourage contributions and endanger the likelihood of success when signals are common, but not when signals are private. In addition, successful coordination of contributions is less frequent in a control treatment featuring a standard provision point mechanism than in the experimental treatment where the payoff reduction factor is high, although the theoretical predictions of the two games are similar.
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Handshakes Will Never Be The Same Once You Know This - PsyBlog

Handshakes Will Never Be The Same Once You Know This - PsyBlog | Bounded Rationality and Beyond | Scoop.it

Could this study provide the real reason that we tend to shake hands when greeting another person? People shake hands partly to smell each other’s odour, a new study suggests. 

Handshakes are actually socially acceptable ways for people to communicate using smells.

The new study found that people spend more than twice as long sniffing their hands after a handshake.

Hand-sniffing is covered by bringing the hand up to touch the face — for example, by pretending to scratch.

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Books on behavioral and experimental economics | pro libertate net

Published by dd on 31. March 2010 - 22:36

At Geary Behavioural Economics Blog @LiamDelaneyUCD is looking for books on behavioral economics. Given my interest in the field,I would like to add a few books. I add a few on experimental economics, too, as both fields are close relatives.


First, let’s see what he already has on his list:

“Judgement Under Uncertainty: Heurisics and Biases” edited by Kahnemann, Slovic, and Tverky“Choices, Values, and Frames” edited by Daniel Kahneman and Amos Tversky“Heuristics and Biases: The Psychology of Intuitive Judgement.” edited by Thomas Gilovich, Dale Griffin, and Daniel Kahneman
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neuroecon_present_future.pdf

What is neuroeconomics doing? This issue of Games and Economic Behavior collects a set of papers that apply the concepts, methods, and technical tools of neuroscience to economic analysis. This is what has by now come to be called neuroeconomics (NE). If one wants to understand what NE is, then the most useful way is probably to look at what NE does in concrete research, so we invite the curious reader to choose one of the articles and begin to read. But if one is questioning the method or even the usefulness of this line of research, then an introduction may be the right place for a discussion. In particular this is true if one is trying to understand what this developing field of research is trying to accomplish in the future. The main content of this introduction will be an attempt to provide a possible answer to this question. In a different paper (Glimcher and Rustichini, 2004) Paul Glimcher and I have tried to provide our view on what neuroeconomics is technically, what methods it uses, and how researchers in the area are in general planning to deal with the classical themes of economics, decision theory and game theory in the first place. A different view is presented in Camerer et al. (2005). In summary, I think the following is the main point. At the very least, neuroeconomics provides new data in addition to those we have available from theoretical, empirical, and experimental research on human behavior. 

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What is ‘neuromarketing’? A discussion and agenda for future research

Abstract

Recent years have seen advances in neuroimaging to such an extent that neuroscientists are able to directly study the frequency, location, and timing of neuronal activity to an unprecedented degree. However, marketing science has remained largely unaware of such advances and their huge potential. In fact, the application of neuroimaging to market research – what has come to be called ‘neuromarketing’ – has caused considerable controversy within neuroscience circles in recent times. This paper is an attempt to widen the scope of neuromarketing beyond commercial brand and consumer behaviour applications, to include a wider conceptualisation of marketing science. Drawing from general neuroscience and neuroeconomics, neuromarketing as a field of study is defined, and some future research directions are suggested.

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Behavioral Welfare Economics, Libertarian Paternalism, and the Nudge Agenda

Although behavioral economics was already firmly established as a subdisciplineof economics by the first decade of the twenty-first century, the enterprise ap-pears to have received a boost from the economic crisis that struck around then.As David Brooks put it in the New York Times: “My sense is that this financialcrisis is going to amount to a coming-out party for behavioral economists andothers who are bringing sophisticated psychology to the realm of public pol-icy.” Brooks is frequently described as a conservative, but commentators acrossthe political spectrum have blamed the crisis in part on inadequate economicmodels. The former chairman of the Federal Reserve Alan Greenspan is knownas a follower of Ayn Rand’s objectivism, which celebrates the value of rationalself-interest. Yet, in 2008 Congressional testimony, Greenspan said: “I made amistake in presuming that the self-interests of organizations, specifically banksand others, were such as that they were best capable of protecting their ownshareholders and their equity in the firms.” Similarly, the Nobel laureate andliberal economic commentator Paul Krugman argues:[Economists] need to abandon the neat but wrong solution of assum-ing that everyone is rational and markets work perfectly. The visionthat emerges as the profession rethinks its foundations may not beall that clear; it certainly won’t be neat; but we can hope that itwill have the virtue of being at least partly right.
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An interview with Carol Tavris » American Scientist

An interview with Carol Tavris » American Scientist | Bounded Rationality and Beyond | Scoop.it

Why do people persist in believing things that have been proved to be untrue? Social psychologist Carol Tavris, author of Anger and The Mismeasure of Woman, joins fellow social psychologist Elliot Aronson to answer this question inMistakes Were Made (But Not by Me): How We Justify Foolish Beliefs, Bad Decisions, and Hurtful Acts (Harcourt, 2007). The authors use cognitive dissonance theory to analyze issues and disputes in the worlds of politics, medical science, psychiatry, the criminal justice system and personal relationships. The theory can't explain everything, Tavris says, but it can shed light on a surprising number of issues. American Scientist assistant book review editor Anna Lena Phillips interviewed Tavris by telephone and e-mail in August and September 2007. 

How did you become interested in the subject of cognitive dissonance, and how did you and Elliot Aronson determine the course you would take in writing the book?

Well, we have been friends and colleagues for many years. We were sitting around one afternoon talking about George W. Bush and the fact that commentators from right, left and center were all shouting at him to admit that he was wrong about weapons of mass destruction and wrong about everybody dancing in the streets to greet us, and how come he didn't just say so. Andy Rooney, in a commentary for 60 Minutes, actually wrote him a mock-speech and begged him to deliver it to the country: "I told you Saddam Hussein tried to buy the makings of nuclear bombs from Africa. That was a mistake and I wish I hadn't said that. I get bad information sometimes just like you do."

 
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"Dressing down" is a status symbol for the elite

"Dressing down" is a status symbol for the elite | Bounded Rationality and Beyond | Scoop.it
Dress for success. 

The casual outfit that Facebook co-founder and CEO Mark Zuckerberg sported in front of elegantly dressed bankers and investors just before his company went public generated much clamor in the media. While some observers judged the young entrepreneur’s choice to wear his typical hoodie and jeans on such an official occasion as a mark of immaturity, others defended it as a sign of boldness that helped spread publicity about the deal.

Why is the “CEO Casual” look sported by Zuckerberg, Apple CEO Steve Jobs, and certain other business leaders interpreted as a sign of status, while other professionals in casual dress would be laughed out of a job interview? Our research explores the conditions under which nonconforming behaviors, such as wearing red sneakers in a professional setting or entering a luxury boutique wearing gym clothes, lead to attributions of enhanced status and competence rather than social disapproval.

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High-Fat Diet May Disturb a Range of Thoughts And Feelings - PsyBlog

High-Fat Diet May Disturb a Range of Thoughts And Feelings - PsyBlog | Bounded Rationality and Beyond | Scoop.it

Treat your gut well and this is why your brain will thank you.

 

Changes in bacteria in the gut are linked to critical psychological changes, a new mouse study finds.

A high-fat diet could increase the risk of repetitive behaviours, depression and anxiety, researchers have concluded.

Dr. John Krystal, editor of journal Biological Psychiatry, where the article was published, said:

“This paper suggests that high-fat diets impair brain health, in part, by disrupting the symbiotic relationship between humans and the microorganisms that occupy our gastrointestinal tracts.”

As the authors write, this is the…

“…first definitive evidence that high-fat diet-induced changes to the gut microbiome [the community of organisms in the human gut] are sufficient to disrupt brain physiology and function in the absence of obesity.” (Annadora et al., 2015)

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Living Comfortably with Hypocrisy and Negative Evidence | SciTech Connect

Living Comfortably with Hypocrisy and Negative Evidence | SciTech Connect | Bounded Rationality and Beyond | Scoop.it

The Google Define:Hypocrisy command returns the following definition: “the practice of claiming to have moral standards or beliefs to which one’s own behavior does not conform; pretense”. Hypocrisy can be conscious or unconscious. People can be aware that their beliefs are contradicted by their daily behavior or not. In this latter case, hypocrisy is often obvious to observers.

Have you ever wondered how people can live comfortably with hypocrisy? For example, have you ever wondered how good people who believe strongly in the American creed and constitution that holds that all men are created equal with inalienable rights can engage in extreme racism, as was once openly practiced by well-respected southern white gentlemen and is practiced to a lesser extent by many people today? Or, have you ever wondered how good German citizens could support Hitler’s persecution of the Jews?

 

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Miklos Szilagyi's curator insight, March 25, 3:25 PM

Wow... that's an interesting one...

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The piano stairs of Fun Theory – short run fun and not a nudge! - iNudgeyou

The piano stairs of Fun Theory – short run fun and not a nudge! - iNudgeyou | Bounded Rationality and Beyond | Scoop.it

Have you ever heard about the piano stairs made famous by Fun Theory? Sure, you have.

At least, when I give talks on the Nudge doctrine everybody seems to know the piano stairs. The YouTube video has apparently spread like a wildfire throughout the world. Watched by millions of tired office workers in search of 15 seconds of fun while tied to their desks; spread by collegial nudges penetrating the walls of the cubicles – “Hey take a look at this!”

But does it really work? And what about the claim that seems to be almost as widespread as the video: the belief amongst many public decision-makers and practitioners that Nudge and FunTheory are basically the same – is that claim true?

 
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Preferences and Exposure to Shocks: Evidence from a Natural Experiment in Palestine

Abstract: We use a series of field experiments in the Palestinian Territories to explore the impact of exposure to shocks on risk, time and ambiguity preferences. We exploit the historical episode of the construction of the separation wall between the State of Israel and the West Bank as an exogenous shock to test changes in fundamental preferences. We find that the wall affects preferences: people in isolated communities are significantly more risk-tolerant and ambiguity-averse than people who never experienced the wall. While we find insignificant differences in discount rates and loss-aversion, our results show patterns of time-varying discount rates and heterogeneity across socio-economic groups. We test alternative mechanisms linking shocks to changes in behaviour. Our evidence suggests that observed differences in risk and ambiguity are not the result of changes in subjective beliefs, learning or emotional reactions, but they are consistent with the hypothesis of a preference shift. This study suggests that large adverse shocks may have long-lasting consequences on individual decision-making with potential effects on savings, investments and consumption patterns.
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Anxious people more apt to make bad decisions amid uncertainty

Anxious people more apt to make bad decisions amid uncertainty | Bounded Rationality and Beyond | Scoop.it

Highly anxious people have more trouble deciding how best to handle life’s uncertainties. They may even catastrophize, interpreting, say, a lovers’ tiff as a doomed relationship or a workplace change as a career threat.

In gauging people’s response to unpredictability, scientists at the University of California, Berkeley, and the University of Oxford found that people prone to high anxiety have a tougher time reading the environmental cues that could help them avoid a bad outcome.

Their findings, reported today (March 2) in the journalNature Neuroscience, hint at a glitch in the brain’s higher-order decision-making circuitry that could eventually be targeted in the treatment of anxiety disorders, which affect some 40 million American adults.

“Our results show that anxiety may be linked to difficulty in using information about whether the situations we face daily, including relationship dynamics, are stable or not, and deciding how to react,” said study senior author Sonia Bishop, an assistant professor of psychology at UC Berkeley and principal investigator of the study.

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Rob Duke's curator insight, March 23, 8:32 PM

Some of what we see in socially disorganized neighborhoods....

Brandal Nicole Crenshaw's comment, March 26, 4:33 PM
This is not surprising to me. When you are dealing with anxiety, or more specifically the factors causing the anxiety, you go through most of your day distracted. You do not have the ability to clearly reason out your choice or ways to find healthy and positive routes for dealing with stress. This can really result in people turning to unhealthy (and in some cases illegal) coping strategies like drug and alcohol abuse.
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Cognitive (Ir)reflection: New Experimental Evidence

Abstract: We study whether cognitive ability explains choices in a wide variety of behavioral tasks, including riskand social preferences, by collecting evidence from almost 1,200 subjects across eight experimentalprojects. Since Frederick (2005)'s Cognitive Reflection Test (CRT) has been administered to allsubjects, our dataset is one of the largest in the literature. We divide the subjects pool into three groupsdepending on their CRT performance. Reflective subjects are those answering at least two of the threeCRT questions correctly. Impulsive ones are those who are unable to suppress the instinctive impulseto follow the intuitive although incorrect answer in at least two 2 questions, and the remaining subjectsform a residual group. We find that females score significantly worse than males in the CRT, and intheir wrong answers impulsive ones are observed more frequently. The 2D-4D ratio, which is higherfor females, is correlated negatively with subject's CRT score. In addition, we find that differencesbetween CRT groups in risk aversion depend on the elicitation method used. Finally, impulsive subjectshave higher social preferences, while reflective subjects are more likely to satisfy basic consistencyconditions in lottery choices. 
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Subjective Well-Being: When, and Why, it Matters

Abstract: The purpose of this paper is to give a principled answer to the question of under what conditions measures of happiness or life satisfaction, understood as subjectively experienced mental states, can serve as proxies for well-being. According to a widely held view, measures of happiness and life satisfaction represent well-being because happiness andlife satisfaction are constitutive of well-being. This position, however, is untenable. Efforts to address this question interms of Amartya Sen’s capability approach have been similarly unsuccessful. Instead, I argue, happiness and lifesatisfaction matter because, and insofar as, people want to be happy and/or satisfied; consequently, measures ofhappiness and life satisfaction can serve as measures of well-being whenever happiness is sufficiently correlated with orcausally efficacious in bringing about greater preference satisfaction. While this position entails a less expansive view ofthe uses of happiness and life satisfaction measures, I maintain that if their proponents were to take this line, many ofthe objections to their enterprise can be met

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White House Social and Behavioral Sciences Team seeking Fellows and Associates - Decision Science News

White House Social and Behavioral Sciences Team seeking Fellows and Associates - Decision Science News | Bounded Rationality and Beyond | Scoop.it
The White House Social and Behavioral Sciences Team (SBST) is currently seeking exceptionally qualified individuals to serve as Fellows and Associates.
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Neuroeconomics—From neural systems to economic behaviour

Abstract

Neuroeconomics is a new and highly interdisciplinary field. Drawing from theories and methodologies employed in both economics and neuroscience, it aims at understanding the neural systems supporting and affecting economically relevant behaviour in real-life situations. Although incomplete, the evidence is beginning to clarify with the possibility that neuroeconomic methodology might eventually trace whole processes of economically relevant behaviour. This paper accompanies the author's ConNEcs 2004 keynote speech on applications of neuroeconomic research.

  
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Redefining neuromarketing as an integrated science of influence

Multiple transformative forces target marketing, many of which derive from new technologies that allow us to sample thinking in real time (i.e., brain imaging), or to look at large aggregations of decisions (i.e., big data). There has been an inclination to refer to the intersection of these technologies with the general topic of marketing as “neuromarketing”. There has not been a serious effort to frame neuromarketing, which is the goal of this paper. Neuromarketing can be compared to neuroeconomics, wherein neuroeconomics is generally focused on how individuals make “choices”, and represent distributions of choices. Neuromarketing, in contrast, focuses on how a distribution of choices can be shifted or “influenced”, which can occur at multiple “scales” of behavior (e.g., individual, group, or market/society). Given influence can affect choice through many cognitive modalities, and not just that of valuation of choice options, a science of influence also implies a need to develop a model of cognitive function integrating attention, memory, and reward/aversion function. The paper concludes with a brief description of three domains of neuromarketing application for studying influence, and their caveats.

 
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Well-Being and Economics

Well-Being and Economics

Since its early days as a science, economics has aimed not only to better understand the world, but also to improve it. The urge to change the world is perhaps most famously seen in the workof Karl Marx, who remarked: “The philosophers have only

interpreted  the world in variousways; the point is tochange it” (Marx [1845] 1998: 571). But economists from the left to theright have shared the sentiment. In the words of Paul Samuelson: “Beginning as it did in thewritings of philosophers, theologians, pamphleteers, special pleaders, and reformers, economicshas always been concerned with problems of public policy and welfare” (Samuelson 1947: 203).Friedrich A. Hayek agreed:It is probably true that economic analysis has never been the product of detached intellectual curiosity about thewhy of social phenomena, but of an intense urge to reconstruct a world which gives rise to profound
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jon inge's curator insight, March 21, 5:16 PM

insightful and very detailed discussion on non economic indicators