• Being Rational All the Time Isn’t Going to Do You Any Favors by Zat Rana

 

Being Rational All the Time Isn’t Going to Do You Any Favors by Zat Rana

Being Rational All the Time Isn’t Going to Do You Any Favors by Zat Rana

Snippets from that article:

….They [Daniel Kahneman and Amos Tversky] had discovered that contrary to the model of decision-making espoused by modern economic theory, in real life, humans didn’t make rational decisions based on outcome, but rather, they thought in terms of gains and losses using mental heuristics that often led them to sub-optimal choices.

In short, we are irrational agents by nature, and it tends to get in our way.

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