Tuesday, May 16, 2017

What Plato knew about behavioral economics

Fascinating story in Aeon.

Aeon: What Plato knew about behavioral economics


"Many of Plato’s dialogues dramatise the habits and processes that lead humans to false conclusions. He depicts people believing what they want or what they are predisposed to believe (confirmation bias); asserting whatever comes most readily to mind (availability bias); reversing their opinions about identical propositions based on the language in which the propositions are presented (framing); refusing to relinquish current opinions simply because these happen to be the opinions they currently possess (a cognitive version of loss aversion); making false inferences based on the size and representativeness of a sample of a broader population (representativeness heuristic); and judging new information based on salient current information (a version of anchoring). And this is only a partial inventory of the mental errors that he catalogues and dramatises."


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