Kahneman&Tversky spent a career explaining how our brain is wrong, while they should have explained why it's right but our metrics are wrong
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Replying to @DellAnnaLuca
I agree on the first part but could you explain the second part?
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Replying to @TristanLavender
1/ E.g. prospect theory. They basically say humans aren't able to compute Expected Financial Outcome of decisions such as bets.
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Replying to @DellAnnaLuca @TristanLavender
2 This is true,but they assume our brain should be able to do it because Financial Expected Outcome is the right metric to base decisions on
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Replying to @DellAnnaLuca @TristanLavender
3/ Instead, our brain uses another utility metric to take decisions: Expected Emotional Outcome. And take correct decisions based on it.
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Replying to @DellAnnaLuca @TristanLavender
4/ I find pretentious to say: "this is how our brain should work, and it is wrong to work the way it does."
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Replying to @DellAnnaLuca
I understand your point. The rationality of emotion has eluded psychologists for a long time.
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Replying to @TristanLavender
Exactly. Here I extend the concept to all behavioral psychology, not only behavioral economics.pic.twitter.com/BaMMZsW05L
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Replying to @DellAnnaLuca @TristanLavender
By the way,
@nntaleb reached some similar conclusions here: https://medium.com/incerto/how-to-be-rational-about-rationality-432e96dd4d1a …1 reply 0 retweets 0 likes
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