Whenever I hear someone say “rational” I worry. Everyone means a different thing. This is a problem as obviously you can’t discuss rationality without knowing what it is. Bryan Caplan uses his view of rationality to criticize democracy in The Myth of the Rational Voter (Caplan 2007). The book left me with mixed feelings. I love…
Category: Decision Making
Paranoia Doesn’t Make Sense
The most infuriating articles are written by otherwise impressive scholars. One such article is Roderick Kramer’s When Paranoia Makes Sense. Written in the aftermath of the September 11th terrorist attacks and the Enron debacle it may have resonated at the time. Still, it is irredeemably flawed and socially malignant. Kramer should have known better. Paranoia Doesn’t Make…
Selfishness and Rationality
People often imply that selfishness is central to rational decision making. Yet this is wrong by any meaningful definition of rationality. Selfishness and rationality are not inextricably intertwined. Defining Rationality Definitions matter in the real world. Managers can believe they commit a business sin by considering others — they are being irrational by not being…
