Layman Behavioral Economics: On "deep Rationality"
Douglas T. Kenrick's "Deep Rationality: Evolutionary psychology meets behavioral economics " (Psychology Toady, November 12, 2009) is a very good article.
Let us try to explain the profound behavioral economics in layman's simple language by means of everyday common sense. So, I hope it will help someone understand what is talked by learned economists easily.
Invalid Instincts ("Simplistic and Irrational Biases ")
It is obviously that instincts are our ancestors' successful experiences 10,000 years ago saved on DNA; and pre-instincts are unconsciousness formed by many repetitions of our own successful experiences during our life time today. (Re #1)
The instinct or pre-instinct data are process very fast in our brain or "human computer" just something like simple question-answer matching without time-consuming computation of data.
However, some of our instincts and pre-instincts may be invalid or out of date due to the newly emerged conditions at present time. Apparently, that is why there are "simplistic and irrational biases".
For example, traveling for pleasure as our ancestors' hunting-gathering. (Re #3)
Loss Money in charge ("Loss Aversion")
People are more psychologically moved by a loss of $100 than by a gain of an identical amount. This can be easily explained by the common sense that something in charge is worth more than that something at large. Especially the former is well planned by us for its usage.
This is also one of our instincts.
Brain Computer ("Multitude of Mini-Minds")
Is human brain a single living-cell computer or a multitude of mini-minds? By common sense of a computer user, it is easier to imagine that our brain is a living-cell-made computer with different data structures, applications, priorities, etc. than one like a multitude of mini-minds.This is because using the latter is very difficult to explain our common sense.
Common Sense ("Deep Rationality").
If the above conclusion made from common sense is correct, the "deep rationality" is mainly detemined by our instincts..
References: #1. W. Ying, articlesbasee.com, "Happy Life, Instincts, Wisdom, and Human Computer System." #2. ibid, "Valid Happiness, Instinct and Wisdom." #3. ibid, "Travel for Pleasure, Valid or Not?"
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Article Tags:
behavioral economics
,irrational
,invalid instinct
,pre instinct
,simplistic bias
,instinct
,propagate offspring
,keep dna alive
,multitude of mini minds
,loss aversion
,money in charge
,irrational bias
,10000 years ago norm
,common sense
,evolutionary ps
China's current economic strength and influence cannot play a respected role throughout the market in the region. Whether a rustic could play a respected role inside the regional economy is yet another method of calculating when the country is a crucial world economic energy.
The speed at which Chinese economy develops has shown a trend to slow down and the central government has also declared the lower the aim of the economic growth in 2012. Then, as to China, how should it cope with this slowdown?
Where to place the blame for the present economic fiasco in the latin countries, is not that difficult, but Europe would, if it had been a small business been held up before the courts on various charges including, misappropiation of funds, and obtaining funds under false pretenses. It has largely been a quango with five feet, no ears and a letter box mouth. Europeans are generally not for it because it digs deep into their pockets and provides no more than abusive fiscal pressure.
"In the future ten years, Brazil will expand the scale of power industry. The investment scale will be equal to 2.6 percent of the current gross domestic product", said Ventura, the vice minister of Brazil mining and energy.
Each day we always get to hear about fresh issues from all over the world. These news are nothing but the latest news. These information regarding the happenings or events of the world is brought to the public either in print or through electronic media.
Happy life results from living by 10,000-years-ago norm validly. The norm comes from our instincts. Only our valid instincts run happily and healthily our body as well as our brain.
To sleep about 12 hrs per night in natural darkness is necessary for the maintenance of our health body including smart brain.
Life is driven by keeping DNA alive, which is our instinct or ancestors' successful experiences saved in DNA.
The driving force of the 3 factors making the human extinct is the invalid happiness of extra population, extra consumption and extra technologies. The criminal is human beings ourselves.
New technology is a kind of invalid happiness, which hurts us more often than not and very probably makes us extinct.
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