Bounded Rationality and Beyond
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News on the effects of bounded rationality in economics and business, relationships and politics
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The Four Companies That Control the 147 Companies That Own Everything

The Four Companies That Control the 147 Companies That Own Everything | Bounded Rationality and Beyond | Scoop.it
There may be 147 companies in the world that own everything, as colleague Bruce Upbin points out and they are dominated by investment companies as Eric Savitz rightly points out. But it’s not you and I who really control those companies, even though much of our money is in them. Given the nature of how money is invested, there are four companies in the shadows that really control those companies that own everything. 

#neuroeconomy #Behavioraleconomics #neuroeconomia#boundedrationality

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Jennifer Hogan Peruzzi's curator insight, July 8, 2014 10:03 AM

Interesting...and not the four that I would have imagined.

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“L’Uomo ed il Martello”: La Guida Pratica All’Economia di Ha-Joon Chang | Smartweek

“L’Uomo ed il Martello”: La Guida Pratica All’Economia di Ha-Joon Chang | Smartweek | Bounded Rationality and Beyond | Scoop.it

Un segnale critico circa lo stato del corrente dibattito teorico in economia, è come frasi del tipo “la scuola di pensiero neoclassica non è l’unica” e “l’economia è un argomento politico e non una scienza” risuonino alle orecchie dei più come radicali. Nonostante l’approccio Neoclassico abbia dominato gli ultimi decenni della teoria economica, Chang è convinto che “non esista un solo modo ‘giusto’ di fare economia”, e che la realtà economica sia talmente complessa da non poter essere totalmente analizzata da una sola teoria.

“Esistono almeno nove diverse scuole di economia, ognuna con i propri punti di forza e debolezza,[...] che concettualizzano diverse unità economiche di base (ad es. individui contro le classi), si concentrano su diverse prospettive (ad esempio la macroeconomia contro la microeconomia), si pongono domande diverse (come massimizzare l’efficienza con risorse date oppure aumentare le nostre capacità di produrre tali risorse nel lungo periodo), e provano a fornirci risposte con differenti strumenti analitici (ad es. la razionalità assoluta contro la razionalità limitata).

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Facebook data scientists worried that some users were subject to multiple experiments $FB

Facebook data scientists worried that some users were subject to multiple experiments $FB | Bounded Rationality and Beyond | Scoop.it

The Facebook Data Science group that experimented on user emotions until recently operated with few boundaries and little oversight. Since its creation in 2007, Facebook's Data Science group has run hundreds of tests. One published study deconstructed how families communicate, another delved into the causes of loneliness. One test looked at how social behaviors spread through networks. In 2010, the group measured how "political mobilization messages" sent to 61 million people caused people in social networks to vote in the 2010 congressional elections.

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Decision Making: From the Neural Basis of Our Preferences to the Neural Mechanisms of Our Errors - YouTube

Paul Glimcher
Institute for the Interdisciplinary Study of Decision Making, NYU
--------------------------
There is now compelling evidence that neuroeconomists have identified the biological signature of preference. Brain activity in the ventral striatum and the medial prefrontal cortex appears to be the physical instantiation of the mental process of liking and disliking for everything from consumer goods to leisure activities. Glimcher will present evidence that activity in these brain areas can now be used econometrically to predict choice. Standard neurobiological models of network convergence can be combined with these measurements to take these insights a step further -- allowing both for the accurate prediction of new classes of choice errors at a behavioral level and for the development of choice procedures to minimize those errors. These are examples of how economics and neuroscience are being drawn together so we come to understand the nature of human decision-making at the levels of economics, psychology and neuroscience.
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How Government's Using Behavioral Economics to Get People to Make Better Decisions -Cass Sunstein

How Government's Using Behavioral Economics to Get People to Make Better Decisions -Cass Sunstein | Bounded Rationality and Beyond | Scoop.it
Federally funded projects in several states and localities are testing ways to use convenience and peer pressure to get prison inmates and people who owe child support to make better decisions. 

In Texas, most parents who go to prison still owe child support even though they might not have a job. That’s a problem for inmates because the typical inmate responsible for chlld support payments in the United States leaves state prison about$20,000 in debt, making it harder to pay for housing, transportation and food. It can also be a problem for state child welfare agencies because if states record too many cases of late and unpaid child support payments, they are at risk of losing some federal funding.

Technically, Texas already has a solution: The state offers a process where inmates can lower the amount that inmates owe due to their lower income level while in prison. It’s called modifying their child support order status. But fewer than a third of eligible inmates take advantage of it.

 
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What Actually Happens While You Sleep and How It Affects Your Every Waking Moment

What Actually Happens While You Sleep and How It Affects Your Every Waking Moment | Bounded Rationality and Beyond | Scoop.it
"We are living in an age when sleep is more comfortable than ever and yet more elusive."

The Ancient Greeks believed that one fell asleep when the brain filled with blood and awakened once it drained back out. Nineteenth-century philosophers contended that sleep happened when the brain was emptied of ambitions and stimulating thoughts. “If sleep doesn’t serve an absolutely vital function, it is the greatest mistake evolution ever made,” biologist Allan Rechtschaffen once remarked. Even today, sleep remains one of the most poorly understood human biological functions, despite some recent strides in understanding the “social jetlag” of our internal clocks and the relationship between dreaming and depression. In Dreamland: Adventures in the Strange Science of Sleep (public library), journalist David K. Randall — who stumbled upon the idea after crashing violently into a wall while sleepwalking — explores “the largest overlooked part of your life and how it affects you even if you don’t have a sleep problem.” From gender differences to how come some people snore and others don’t to why we dream, he dives deep into this mysterious third of human existence to illuminate what happens when night falls and how it impacts every aspect of our days.

#neuroeconomy #Behavioraleconomics #neuroeconomia #boundedrationality

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Lies, Cheating, and Creativity: Q&A with Behavioral Economist Dan Ariely - YouTube

Imagine you have some kind of voice within you asking, 'Am I behaving morally or not?'" says Dan Ariely, a behavioral economist and author of the book The Honest Truth About Dishonesty. "That voice sometimes is asleep."

Reason TV's Naomi Brockwell talked to Ariely at Tribeca Film Festival's Games For Change conference, where Ariely and his team set up a "Truth Box," a sort of confessional where participants could record themselves talking about a meaningful lie they'd told in their lives.

"Having to face some of your own past and some of the lies you've told... is actually a very interesting process for us as researchers and, I think, also very cleansing for the people who are participating in it," says Ariely.

Ariely studies economics by running behavioral studies in a lab setting and says he's discovered that people are less likely to lie when presented with a "moral reminder" of some sort. This can be as simple as something like a disclaimer urging participants not to lie. But he's also demonstrated that urging participants swear on the Bible or recall the Ten Commandments before running an experiment resulted in less cheating overall.

An individual's penchat for cheating, Ariely says, is determined by the balance between two conflicting desires. Most people want to gain the edge that cheating or lying might give them but also don't want to think of themselves as immoral. Ariely has uncovered through experimentation that creative people tend to cheat more on average.

"Imagine it's all about rationalization. You want to look at yourself in the mirror and feel good about it. You also want to benefit from cheating. It's all about telling stories. If you're creative, you can tell better stories, which means you can cheat a little bit more and still feel good about yourself," says Ariely.

Watch the video above for a deeper discussion about cheating, lying, and what to do about it. Approximately 7 minutes. 

Visit http://reason.com/reasontv for downloadable versions, and subscribe to Reason TV's YouTube channel for daily content like this.

Shot and Produced by Zach Weissmueller. Interview by Naomi Brockwell. Music by Podington Bear.

Categoria

Notizie e politica

Licenza

Licenza YouTube standard

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Post-Crash Economics

Post-Crash Economics | Bounded Rationality and Beyond | Scoop.it
LONDON – In last month’s European Parliament election, euroskeptic and extremist parties won 25% of the popular vote, with the biggest gains chalked up in France, the United Kingdom, and Greece. These results were widely, and correctly, interpreted as showing the degree of disconnect between an arrogant European elite and ordinary citizens.

Less noticed, because less obviously political, are today’s intellectual rumblings, of which French economist Thomas Piketty’s Capital in the Twenty-First Century, a withering indictment of growing inequality, is the latest manifestation. We may be witnessing the beginning of the end of the neoliberal capitalist consensus that has prevailed throughout the West since the 1980s – and that many claim led to the economic disaster of 2008-2009.

Particularly important is the growing discontent of economics students with the university curriculum. Undergraduates’ discontent matters, because economics has long been the West’s political lodestar.

This discontent was born in the “post-autistic economics movement,” which started in Paris in 2000, and spread to the United States, Australia, and New Zealand. Its adherents’ main complaint was that the mainstream economics taught to students had become a branch of mathematics, disconnected from reality.

The revolt made little progress in the years of the “Great Moderation” of the 2000s, but was revived following the 2008 crisis. Two important links with the earlier network are US economist James Galbraith, the son of John Kenneth Galbraith, and British economist Ha-Joon Chang, author of the best-selling 23 Things They Don’t Tell You about Capitalism.

In a manifesto published in April, economics students at the University of Manchester advocated an approach “that begins with economic phenomena and then gives students a toolkit to evaluate how well different perspectives can explain it,” rather than with mathematical models based on unreal assumptions. Significantly, Andrew Haldane, Executive Director for Financial Stability at the Bank of England, wrote the introduction.

 


LONDON – In last month’s E
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Using empathy to use people: Emotional intelligence and manipulation | The Moral Universe, Scientific American Blog Network

Using empathy to use people: Emotional intelligence and manipulation | The Moral Universe, Scientific American Blog Network | Bounded Rationality and Beyond | Scoop.it

People tend to stereotype psychological phenomena.  It’s tempting to think that stress is always bad, resilience is always good, and so forth.  Like other stereotypes, these beliefs help us neaten the world and extract signal from noise.  Also like other stereotypes, such beliefs are misleading and often harmful.  Call me pessimistic, but whenever the media breathlessly praises a practice or trait—meditation and grit come to mind—I always wonder about its downsides.  Jogging is great for you, but not always, and not in every way (ask my knees).  The same goes for happiness.

My own favorite human characteristic, empathy, is no different.  Recently, empathy has gotten lots of good press.  Books like The Age of Empathy, The Empathic Civilization, and The Better Angels of Our Nature suggest that empathy is on the rise, and might provide a cure for many of our social ills.  Barack Obama is likely the most empathy-positive president in history, often suggesting that curing our country’s “empathy deficit” is mission critical.

But empathy is not always used in the service of good.  Two papers last month highlight this idea through evidence that people use empathy to use other people, manipulating them through a savvy understanding of emotions.

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Why Standard Macro Models Fail During Crises

Why Standard Macro Models Fail During Crises | Bounded Rationality and Beyond | Scoop.it

David Hendry and Grayham Mizon show why the models used by many policymakers perform so poorly in the face of uncertainty

The standard macroeconomic model used by most central banks and other policymakers are "dynamic stochastic general equilibrium models" or "DSGE" as they are known (economists have a knack for catchy branding).  There has been much discussion and debate about why these models performed so poorly during the 2008 financial crisis.  Not only did these models fail to anticipate the crisis, but during the crisis itself - when they were most needed by policymakers - they often failed to give useful or correct advice. The Institute for New Economic Thinking at Oxford's David Hendry and Grayham Mizon in a recent paper show that these standard models crucially depend on the assumption of "stationarity" - that there are no unanticipated or structural changes to the world that could affect agent's decision making.  Of course the real world is far from stationary - particularly in times of crisis.  Hendry and Mizon show that economic history is full of "location shifts" when the means of distributions change.  For example they identify four major epochs in British employment history, the pre WWI era 1860-1914, the period from WWI to 1939, the post-war reconstruction until 1979, and then the modern era from 1979 to present.  Both the means and variances of employment shifted significantly across these epochs. Unfortunately such shifts run afoul of the rational expectations hypothesis (REH) that macroeconomic DSGE models are built on.  In the rational world of these models agents may face uncertainty about the future, but are supposed to have well defined, stationary probabilistic models to make their decisions on.  But in the real world they do not, and as Hendry and Mizon show, this is very damaging for the performance of DSGE models.

#neuroeconomy #Behavioraleconomics #neuroeconomia #boundedrationality

 

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Instinct Can Beat Analytical Thinking

Instinct Can Beat Analytical Thinking | Bounded Rationality and Beyond | Scoop.it
A Q&A with psychologist Gerd Gigerenzer.

Researchers have confronted us in recent years with example after example of how we humans get things wrong when it comes to making decisions. We misunderstand probability, we’re myopic, wepay attention to the wrong things, and we just generally mess up. This popular triumph of the “heuristics and biases” literature pioneered by psychologists Daniel Kahneman and Amos Tverskyhas made us aware of flaws that economics long glossed over, and led to interesting innovations inretirement planning and government policy.

It is not, however, the only lens through which to view decision-making. Psychologist Gerd Gigerenzer has spent his career focusing on the ways in which we get things right, or could at least learn to. In Gigerenzer’s view, using heuristics, rules of thumb, and other shortcuts often leads to better decisions than the models of “rational” decision-making developed by mathematicians and statisticians. At times this belief has led the managing director of the Max Planck Institute for Human Development in Berlin into pretty fierce debates with his intellectual opponents. It has also led to a growing body of fascinating research, and a growing library of books for lay readers, the latest of which, Risk Savvy: How to Make Good Decisions, is just out.

During a visit to HBR’s New York office, Gigerenzer discussed his work for an Ideacast podcast, which you can listen to here:

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The Intuitive Investor: Why Intuition Is Important

The Intuitive Investor: Why Intuition Is Important | Bounded Rationality and Beyond | Scoop.it
There is a growing regard for intuition as many successful investors, including George Soros, attribute their success to it. Here is why intuition is important. 

Over the course of my investment career, I used several unconventional tools to improve the results of the fund I co-managed, but none was more powerful than intuition. In fact, there is a growing regard forintuition as many successful investors, including George Soros, attribute their success to intuition. A recent Wall Street Journal article said of executive decision making, “The potential conclusion is thatpeople who are good at strategy are better at sensing or feeling their way through strategies, rather than relying only on logic and being rational.” Even the author of My Life as a Quant, Emanuel Derman, has a deep-seated research interest in intuition. In this, the first in a regular series on the importance of intuition in investing, I will weigh in on the burgeoning discussion about intuition.

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Behavioural Economics and Taxation

Abstract: Most traditional tax policies have been based on classical economic models of tax payers as decision makers.As in many fields where humans make decision, however, more integrated behavioural economic models, that is, models that take into account both psychological and purely economic factors can provide further insights.Therefore, a large literature in the field on the behavioural economics of taxation exists. This report summarizes central parts of this literature, reviewing mainly experimental and observational studies in the academic literature to be informative for policy-makers. It also provides a potential agenda for future research and application of behavioural economic policies with regard to tax compliance.

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Sustainable Decision-Making: Non-Monetary Incentives for Pro-Social Behavior in the Energy Sector

Abstract: Taking into account insights into the reality of human decision-making, is an important challenge for today's policymakers. Are there `cheaper', more efficient and possibly as well more effective, non-financial ways of influencing the behaviour of private and corporate citizens, nudging them towards socially desired choices, for example, in the domain of energy consumption? Can such mechanisms complement or substitute for monetary incentives in fostering sustainable decision-making in policy relevant areas such as energy consumption? If so, what mechanisms might be feasible to implement in actual policymaking? Against this background, the Dutch Ministry of Economic Affairs (Ministerie van Economische Zaken) wants to know which "nudges" are the most suitable for application in the field of energy conservation. To this end, in this report we (1) take stock what is known about the effects of non-monetary incentives in general, and legacy reminders in particular, in increasing individuals' regard for collective interests and for intergenerational beneficence, in particular in the domain of energy consumption (literature review); (2) investigate in a laboratory setting the effects of selected non-monetary incentives on a selection of relevant decision tasks (laboratory experiments); and (3) apply the insights from the literature review and laboratory experiments to specific instruments of policy-making in the Netherlands.

#neuroeconomy #Behavioraleconomics #neuroeconomia#boundedrationality

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Nomura's Richard Koo on Balance Sheet Recessions and the QE Trap (Video)

Nomura's Richard Koo on Balance Sheet Recessions and the QE Trap (Video) | Bounded Rationality and Beyond | Scoop.it
Richard Koo examines different ways that balance sheet recessions have played out in Japan, the United States, and the Eurozone since the 2008 global financial crisis. 

he world’s leading central banks have added massive amounts of liquidity to the financial system, yet global economies are still stumbling their way through a weak recovery. Banks are holding reserves far in excess of their required levels — twenty times the required level of reserves in the United States, fourteen times the required level in Japan, and ten times in the UK.

According to Richard Koo, chief economist of Nomura Research Institute, these monetary reserves have not led to an increase in private sector spending because the big economies are struggling through balance sheet recessions, and are at risk of getting stuck in a QE trap.

Koo is the author of The Holy Grail of Macroeconomics: Lessons from Japan’s Great Recession, and his work focuses on the effects of government spending in times of recession. At the recent CFA Institute Japan Investment Conference, he examined the different ways that balance sheet recessions have played out in Japan, the United States, and the eurozone since the 2008 global financial crisis.

#neuroeconomy #Behavioraleconomics #neuroeconomia #boundedrationality

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Experimental evidence of massive-scale emotional contagion through social networks

Experimental evidence of massive-scale emotional contagion through social networks | Bounded Rationality and Beyond | Scoop.it
Abstract

Emotional states can be transferred to others via emotional contagion, leading people to experience the same emotions without their awareness. Emotional contagion is well established in laboratory experiments, with people transferring positive and negative emotions to others. Data from a large real-world social network, collected over a 20-y period suggests that longer-lasting moods (e.g., depression, happiness) can be transferred through networks [Fowler JH, Christakis NA (2008) BMJ 337:a2338], although the results are controversial. In an experiment with people who use Facebook, we test whether emotional contagion occurs outside of in-person interaction between individuals by reducing the amount of emotional content in the News Feed. When positive expressions were reduced, people produced fewer positive posts and more negative posts; when negative expressions were reduced, the opposite pattern occurred. These results indicate that emotions expressed by others on Facebook influence our own emotions, constituting experimental evidence for massive-scale contagion via social networks. This work also suggests that, in contrast to prevailing assumptions, in-person interaction and nonverbal cues are not strictly necessary for emotional contagion, and that the observation of others’ positive experiences constitutes a positive experience for people.

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Experience Economy - Cass Sunstein TENudge

Experience Economy - Cass Sunstein TENudge | Bounded Rationality and Beyond | Scoop.it

Cass Sunstein TENudge

We participated at the international conference of the European Nudge Network on Nudging and behavioural economics Friday the 27th of June. Keynote speaker; Cass Sunstein Harvard professor and former administrator at the White house(Office information and regulatory affairs), co author of the book Nudge and still consultant to president Obama.

The conference was organised by prof. Lucia Reisch, Copenhagen Business school, Pelle Guldborg Hansen, Behavioural researcher at Roskilde University and founder of the nudge network TEN) and Alberto Alemanno , Faculty Director of HEC NYU Regulatory Policy Clinic. The conference was very interesting and could not fail because of its high level contributions by Cass Sunstein, Katie Martin of Ideas42, Owain Service Director of the behavioural Insights team in Great Britain at 10 Downing street, Prof Lucia Reisch, Pelle Guldborg Hansen, Alberto Alemanno and David Mair Head of foresight scanning and research at the EU and of the very presence of a lot of professionals in the field who were very interested to share their experiences .

Cass Sunstein elaborated on past, present and future of nudging.

 

#neuroeconomy #Behavioraleconomics #neuroeconomia #boundedrationality

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Behavioral Indifference Curves

According to the endowment effect there is some discomfort associated with giving up a good, that is to say, we are willing to give up something only if the price is greater than the price we are willing to pay for it. This implies that the indifference curves should designate a reference point at the current level of consumption. Such indifference maps are kinked at the current level of consumption. The kinks in the curves imply that the utility function is not differentiable everywhere and the budget constraint does not always have a unique tangent with an indifference curve. Thus, price changes may not bring about changes in consumption which may be the reason for the frequent stickiness of prices, wages and interest rates. We also discuss a multiple period example in which the indifference map shifts as the reference point shifts implying that the curves cross over time even though tastes do not change.

 
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Behavioral Economics as Apparatus: Producing and Governing "Homo Economicus"

Behavioral Economics as Apparatus: Producing and Governing "Homo Economicus"
Abstract:The research programme of behavioral economics is gaining increasing influence, both in academic economics and in interest from American policy-makers. This paper analyzes behavioral economics as both a theoretical discourse and implemented governmental practicefrom the perspective of Foucault’s genealogical investigation of neoliberalism andgovernmentality. There exists a jarring parallel between the project(s) of behavioral economicsand Foucault’s theorization of the neoliberal art of governing. Ultimately, I argue that behavioraleconomics should be understood as a political economic apparatus of neoliberal governmentalitythat has the objective of using the state to manage and regulate individuals, interests, and populations – by attempting to correct their deviations from rational, self-interested, utility-maximizing cognition and behavior – such that they more effectively and efficiently conform tomarket logics and processes. In this analysis, I contend that behavioral economics enacts threecomponents of neoliberal governmentality as Foucault describes it: positioning the market as asite of truth and veridiction for the individual and the state; regulating what constitutes theobjects of political economy and governmental intervention – interests and utilities; and producing homo economicus (“economic human”) and diffusing this mode of economicsubjectivity across the social terrain. I conclude by examining the modifications to Foucault’sframework implied by behavioral economics and the further lines of inquiry generated by myanalysis.
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Behaviorally Informed Financial Services Regulation

Abstract

Financial services decisions can have enormous consequences

for household well-being. Households need a range of financial services—to conduct basic transactions, such as receiving their income, storing it, and paying bills; to save for emergency needs and long-term goals; to access credit; and to insure against life’s key risks. But the financial services system is exceedingly complicated and often not well-designed to optimize household behavior. In response to the complexity of our financial system, there has been a long-running debate about the appropriate role and form of regulation. Regulation is largely stuck in two competing models—disclosure, and usury or product restrictions. 

This paper explores a different approach, based on insights from behavioral economics on the one hand, and an understanding of industrial organization on the other. At the core of the analysis is the interaction between individual psychology and market competition. This is in contrast to the classic model, which relies on the interaction between rational choice and market competition. The introduction of richer psychology complicates the impact

of competition. It helps us understand that firms compete based on how individuals will respond to products in the marketplace, and competitive outcomes may not always and in all contexts closely align with improved decisional choice and increased consumer welfare. The paper adopts a behavioral economic framework that considers firm incentives to respond to regulation. Under this framework, outcomes are an equilibrium interaction between individuals with specific psychologies and firms that respond to those psychologies within specific market contexts. Regulation must then address failures in this equilibrium. The model suggests, for example, that in some contexts market participants seek to overcome common human failings (as for example, with under-saving) while in other contexts market participants seek to exploit these failings (as for example, with over-borrowing).

Behaviorally informed regulation needs to take account of these different contexts. 

The paper discusses the specific application of these forces to the case of mortgage, credit card, and banking markets. The purpose of this paper is not to champion policies, but to illustrate how a  behaviorally informed regulatory analysis would lead to a deeper understanding of the costs and benefits of specific policies. To further that understanding, in particular, the paper discusses ten ideas:

• Full information disclosure to debias home mortgage borrowers.

• A new standard for truth in lending.

• A “sticky” opt-out home mortgage system.

• Restructuring the relationship between brokers and borrowers.

• Using framing and salience to improve credit card disclosures.

• An opt-out payment plan for credit cards.

• An opt-out credit card.

• Regulating of credit card late fees.

• A tax credit for banks offering safe and affordable accounts.

• An opt-out bank account for tax refunds.

#neuroeconomy #Behavioraleconomics #neuroeconomia #boundedrationality

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The Precautionary Principle -

Yaneer Bar-Yam, Rupert Read, Nassim Nicholas Taleb, New England Complex Systems Institute
School of Philosophy, University of East Anglia
School of Engineering, New York University

Abstract—The precautionary principle is useful only in certain
contexts and can justify only a certain type of actions. We
present a non-naive, fragility-based version of the precautionary
principle, placing it under formal statistical and probabilistic
structure of “ruin” problems, in which an entire system is at a
risk of total failure. We discuss the implications this definition
has on current questions about the use of nuclear energy and
the creation of GMOs, and address common counterarguments
to our claims.

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The evolution of eusociality. [Nature. 2010] - PubMed - NCBI

The evolution of eusociality. [Nature. 2010] - PubMed - NCBI | Bounded Rationality and Beyond | Scoop.it

Eusociality, in which some individuals reduce their own lifetime reproductive potential to raise the offspring of others, underlies the most advanced forms of social organization and the ecologically dominant role of social insects and humans. For the past four decades kin selection theory, based on the concept of inclusive fitness, has been the major theoretical attempt to explain the evolution of eusociality. Here we show the limitations of this approach. We argue that standard natural selection theory in the context of precise models of population structure represents a simpler and superior approach, allows the evaluation of multiple competing hypotheses, and provides an exact framework for interpreting empirical observations.

 
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La crise économique sur le divan du psychanalyste

La crise économique sur le divan du psychanalyste | Bounded Rationality and Beyond | Scoop.it

L'analyse économique repose sur un postulat faux : la rationalité des acteurs. La nouvelle norme est celle du chaos perpétuel. Même le FMI a avoué qu'il avait beaucoup de mal à analyser avec les outils « classiques » de l'économie l'enchaînement de crises qui se succèdent depuis 2008 dans le monde. Deux économistes de renom, Vivien Levy-Garboua, « senior adviser » de BNP Paribas, et Gérard Maarek, conseiller scientifique de l'Edhec, prennent acte de ce constat d'impuissance dans ce nouveau livre qui propose ni plus ni moins une sorte de révolution pour leur discipline. Le problème, expliquent les deux auteurs, l'un et l'autre praticiens aguerris des modèles économétriques, c'est que ces modèles reposent sur l'hypothèse de rationalité de l'homo oeconomicus, de moins en moins pertinente pour analyser les évolutions convulsives de notre économie financiarisée et mondialisée. « Depuis quelques décennies, observent-ils, le psychisme de l'homme moderne s'est profondément modifié et, avec lui, celui des groupes constitués, familles, entreprises, peuples, dans lesquels il s'insère. »

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Neuroeconomics of Complex Social Behavior - YouTube

Michael L. Platt
Duke Institute for Brain Sciences, Center for Cognitive Neuroscience, Duke University

We are the most charitable species on the planet—often giving to others we don't even know. We are also among the most competitive—misleading, lying, and cheating to further our own ends. How the brain shapes these choices remains poorly understood. I will describe recent work using a new model of social decision making in which pairs of monkeys interact through a computer device while we either monitor or manipulate their brains. We found that monkeys favor choices that reward another monkey, particularly if he is more familiar or subordinate, rather than choosing to reward no one. Oxytocin—a hormone implicated in social bonding—increases both prosocial choices and attention to the other monkey. We also found that prosocial choices selectively activated neurons in the medial frontal cortex, an area implicated in empathy in humans. By contrast, when monkeys played a competitive game against each other, they rapidly developed unpredictable behaviors that served to mislead the other monkey. We found that deceptive tactics selectively activated a specific population of cells in the lateral frontal cortex. Inactivating these neurons impaired deceptive planning. Together, these discoveries define part of a network of brain areas specialized for complex social behavior and cognition.
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Intelligence and the Brain: Recent Advances in Understanding How the Brain Works with Jeff Hawkins - YouTube

By Xiao-Jing Wang, NYU Shanghai Many challenging questions about how the brain makes choices require an integrative approach across different levels of investimets. How the brain creates intelligence is viewed by many as the greatest scientific quest of all time. We are living at the time when rapid progress is being made and a comprehensive theory of brain function is emerging. Jeff Hawkins, an inventor, engineer, neuroscientist, author and entrepreneur, presents the big picture of what we know so far and describes recent progress in a core issue: why neurons are arranged as they are in the neocortex, how this arrangement builds models of the world, and how these models make predictions and generate actions. Series: "UC Berkeley Graduate Council Lectures" ..

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