There is a wonderful 2003 Science article about how people react to default choices. The conclusion? Defaults matter. Why Does This Matter? The article impresses for a number of reasons including: Saving lives matters. While it is not a theory paper the theoretical implications are substantial. What are people’s preferences — what they say or…
Category: Decision Making
The Politician’s Fallacy
Yes Minister, a British TV show, explained a logical mistake called The Politician’s Fallacy. The politician sees a problem and feels that “Something must be done”, They find an approach and say “This is something”, Then they make a logical leap, “this must be done”. Measuring National Culture Numerical analysis of culture in business reminds…
Laziness Is A Sustainable Resource
People can be lazy. We often don’t find out all information relevant to the decision we are making. It is hard work to find information. Our decisions based upon limited information can lead to personally or environmentally destructive outcomes. People wouldn’t make these decisions if they thought a little harder. This is a problem. What…
Rational Voters?
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…
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…
