Posted: Mar 01, 2010 7:55 am
My view is that economics is NOT a science but a discipline like history that can analyse trends and observe generalities but has no predictive power at all.
The economic community would like to think otherwise.
Humans are not gas molecules and are asymmetrical and irrational in their decision making.
this is the asymmetry I speak of and it's not restricted to humans...capucin monkey's exhibit it clearly as well....once they perceive "unfair" - revenge and violence become the norm out of all proportion to the trigger event.
Primates will work against their short term self interest to exact revenge on unfair practice once it goes outside of their personal tolerance....
we will all tolerate and understand a certain degree of unfairness in society and outcomes.....once it gets beyond those boundaries.....violence and revolution ensues....
The economic community would like to think otherwise.
Humans are not gas molecules and are asymmetrical and irrational in their decision making.
Ah, I remember hearing about an experiment recently where a human plays against a computer, and basically they just decide on how much the computer (who they think is another person) gets. In the end, they found that humans would tend to short change their opponent, even at their own expense (so instead of giving themselves and the other person 4 points, they'd choose to take 3 points and only give 1 point to their opponent - the computer). They were really odd results, but I'll have to find the paper for the details
this is the asymmetry I speak of and it's not restricted to humans...capucin monkey's exhibit it clearly as well....once they perceive "unfair" - revenge and violence become the norm out of all proportion to the trigger event.
Primates will work against their short term self interest to exact revenge on unfair practice once it goes outside of their personal tolerance....
we will all tolerate and understand a certain degree of unfairness in society and outcomes.....once it gets beyond those boundaries.....violence and revolution ensues....