Unit 2: Obstacles to Reasoning Well - NON BIAS types (Part 2)

Dan Ariely’s question

How reliable are our senses in decision-making?

If we make so many predictable errors in things we are ordinarily very good at (e.g. vision),  how rational are the choices people actually make?

Dan Ariely Background story

• The "Conventional Wisdom" Conflict: The nurses believed that ripping the bandages off quickly was the best method, as it meant a shorter duration of intense pain.

The Realization of Irrationality

• A Different Perspective: Ariely observed that he experienced less, or at least more manageable, pain when the bandages were removed slowly, even though the process took longer.

• The Lesson: He realized that the nurses, despite their experience, were acting on a flawed intuition. They were maximizing pain intensity in an attempt to minimize duration, a decision that proved to be suboptimal for the patient's experience.

The Research Question: This experience led him to investigate why professionals often make poor, irrational decisions, which ultimately prompted his career in studying behavioral economics.

Empirical Opennes

Willingness to test assumptions about human behavior in our everyday decision making, rather than deciding ahead of time. Truly empirical.

Shakespeare’s view on Human Nature

Humans are noble and admirable in reasoning. - Hamlet

Rational Economic Model

Assumes humans are ideal decision-makers from the start, that we are blessed with ideal rationality.

Acknowledges that we are impressive cognitively, although maintain intellectual shortcomings, as predictively irrational human beings.