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I don't understand. Kahneman's whole thing is showing that it's wrong to assume that humans are rational actors. Your second paragraph is exactly the point - th
by dmazin 15y ago
I don't understand. Kahneman's whole thing is showing that it's wrong to assume that humans are rational actors.
Your second paragraph is exactly the point - the choices are not equivalent to humans.
- roel_v 15y agoHumans are rational, just not in the 'mathematically rational' sense. I.e., not just using statistics and probabilities to make decisions. As long as decision-making involves a process (even if it's unconscious) of trade-offs to optimize total utility, it's still rational (well one can debate if should be called 'rational' or have some qualifier attached to it, but then it becomes a definition question, a rather boring one).