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Full Description
For a long time, economists have assumed that we were cold, self-centred, rational decision makers - so-called Homo economicus; the last few decades have shattered this view. The world we live in and the situations we face are of course rich and complex, revealing puzzling aspects of our behaviour. Optimally Irrational argues that our improved understanding of human behaviour shows that apparent 'biases' are good solutions to practical problems - that many of the 'flaws' identified by behavioural economics are actually adaptive solutions. Page delivers an ambitious overview of the literature in behavioural economics and, through the exposition of these flaws and their meaning, presents a sort of unified theory of behaviouralism, cognitive psychology and evolutionary biology. He gathers theoretical and empirical evidence about the causes of behavioural 'biases' and proposes a big picture of what the discipline means for economics.
Contents
Part I. Setting the Scene: 1. The homo economius model; 2. The psychology of biases in human behaviour; 3. The logic of a scientific revolution in economics; 4. Evolution and the logic of optimism; Part II. Individual Decisions: 5. Rules of thumb and gut feelings; 6. Reference points and aversion to losses; 7. Sensitivity to probability; 8. The randomness of choices; 9. Impatience; Part III. Social interactions; 10. Kindness and reciprocity; 11. Emotions and commitment; 12. Social identity; 13. Impression management; 14. Selection of delusion; Part IV. Epilogue; 15. Rationality?
