Econs

Notes

Claim

Econs represent humans in their "purest" logical form. Econs are always rational, i.e use only System 2 enables deliberate analytical thinking for complex problems, they are immune to matters of The first number sets the frame for all that follow, Environmental stimuli trigger automatic behavioral responses or Emotional hijacking is uncontrolled System 1 dominance over reasoning. The only metric for their decision making is expected Utility quantifies measurable benefits and guides rational decisions.

Explanation

As a simple assumption in the field of economics, we assume that people are econs, that they are rational agents that have full information, complete freedom to make any choice they want, and have the mental capabilities to follow through with their decision.

They seem to forget the power of Social environment shapes behavior and identity through norms and conformity, the effects of Environmental design, and cases of Knowing the right thing doesn't mean we do it, where we fail to act despite our best intentions. Econs have supposably aligned their behavior with their preference, so Behavior reveals true preferences works for econs. By understanding someone's Incentives shape behavior by making certain actions more attractive, you can know everything about their behavior.

Why it matters

Examples

Supporters

Opposers

We never were, and never will be econs. We are social creatures, guided by emotions more often than reason, limited in information, time and energy, and prone to make many many mistakes.

Open questions

Visual

Overview

🔼Topic:: Dual Process ↩️Origin:: thinking fast and slow (book) 🔗Link::