Human Irrationality is a Fact, not a Fad
Once upon a time, we were taught that people are basically rational—at least when they have to be, at the stock market, the voting booth, the courtroom, the hospital, the school, the employment office and other important places. Economists, in particular, depended on their version (rationality=everyone is out for himself all the time) but the reliable rule of reason was important for politics, law, medicine and other fields as well. Then some economists changed their minds and put the word behavioral in front of their discipline. They reported abundant evidence that people don't know when they're being rational and can't decide to use reason at will. As these researchers were pushing against the old assumption, they (and their popularizers even more) banged the We're-Irrational drum pretty hard. So now there's a backlash: People pointing out that, foolish as it may be to say that people always think straight, it is equally dumb to claim they never think straight.
As a complaint about what I call post-rational thinking, this is largely a straw man. I've never run across a neuroscientist, psychologist or economist who claimed that people are utterly incapable of reason (what would be the point of showing them evidence that they can't make sense of evidence?). Maybe Jon Haidt didn't acknowledge his dependence on reason enough in his book. Maybe David Brooks sentimentally devalued conscious reasoning in his, as Thomas Nagel pointed out. But they didn't deny the rational mind's abilities. And then, in Thinking Fast and Slow, Daniel Kahneman, the world's most famous and most honored behavioral economist, continually reminds readers that people can and do reason well all the time. So I don't agree with my new fellow-blogger, Steven Mazie, that we're awash in "a faddish denial that human beings can think straight."
Indeed, the problems posed by post-rational research (and the reasons I'm interested in it) stem from the way human beings can "think straight." It's just that they can't tell when they are doing so, can't will themselves to do so, and often think they're being rational when they are not. As a result, there is a gap between the way our important institutions officially work and the way they really work, and this gap causes a great deal of harm.
Two examples: Officially markets are efficient sorters of information that help all participants find the true prices of goods and services. In reality, markets aren't meetingplaces of rational beings, and hence are susceptible to runs, panics, bubbles and fraud. Officially, judges are trained experts who objectively apply the law. In reality, judges who have had to make a lot of decisions without a break are more severe than they are when they've just had a break. And judges who have rolled a dice and gotten a high number will choose a longer sentence than will judges who rolled a low number, for the same criminal. We need to fix markets that rest on the false assumption of perfect rationality. We need to protect the justice system against the assumption that judges are consistent from 10 to 6. To ignore the evidence, by, say, dismissing it as a fad, is to let our institutions run badly in order to preserve the fiction of rationality on which they rest. That wouldn't be terribly rational of us, would it?
In between the absurd extremes of Perfect Rationality and and Perfect Irrationality (which nobody believes in anyway) are important questions, all of them still open, and none simple: When is Reason actually engaged? How can we tell? What rules do we follow instead of logic? And, most importantly, what do we mean by "thinking straight"?
This last question is seldom addressed in books and articles on human irrationality. Instead, as Mazie notes, a lot of this material uses a thin and impoverished notion of human thought. (Deirdre McCloskey makes a similar point about the allied field of "happiness economics" here.) Often, their model of what thought is, and what it is for, is as bad as the old Rational Economic Man models. In fact, often, it is the old REM model: After all, to say that people make systematic errors when they make choices is to say that we know what is correct, and that "correct" is doing what old-school economists would do. But perhaps those economists were wrong.
For example, people who have to choose between three options (call them A, B and C) will value them differently if they previously had to choose between A and B. Economists say this is faulty thinking, because the value of A and the value of B are not altered by the presence of C. But many creatures, including slime molds, are subject to this "error." So we should at least admit the possibility that it could be more appropriate for a living being to make the "error" than to act like a 20th-century economist. More broadly, we should realize that the end goal of a better understanding of human behavior isn't a few tweaks and nudges, but a better definition of what it means to think, and be, and be well.
Research into human irrationality, then, has the potential to cure some of our most important institutions of the habitual harms they inflict on us. And longer-term, it can contribute to a better understanding of what Reason is, and what we (sometimes) rational animals are. For both those reasons, I don't think this is just a passing fad.
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Hungarian cartographer travels the world while mapping its treasures.
- Simple idea, stunning result: the world's watersheds in glorious colors.
- The maps are the work of Hungarian cartographer Robert Szucs.
- His job: to travel and map the world, one good cause at a time.
The world<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUyNS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzMzU3Njk1M30.rRdZpcl0bfVi4oBsljHdZSbcX0New9rdLcx6fr2mD7Y/img.png?width=980" id="f982a" class="rm-shortcode" data-rm-shortcode-id="fa67421340f881d5ab91463514cf9a6d" data-rm-shortcode-name="rebelmouse-image" />
Can you spot the world's ten largest drainage basins? In order of magnitude: Amazon, Congo, Nile, Mississippi, Ob, Parana, Yenisei, Lena, Niger, Amur. Image source: Grasshopper Geography
Africa<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUyNi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzOTI2MzI0MX0.OeTS-scZwBES4AlZAan7fBlaBkznkig5hPjgcd1j6hw/img.png?width=980" id="e987c" class="rm-shortcode" data-rm-shortcode-id="2d3a8999ed4071a123b30efc5652fee9" data-rm-shortcode-name="rebelmouse-image" />
Africa is home to the rivers with the world's second- and third-largest catchment areas: the Congo (in blue), with a basin of 1.44 million square miles (3.73 million km2), and the Nile (in red), with basin area of 1.26 million square miles (3.25 million km2). The Nile is the longest river in Africa, though (4,130 miles; 6,650 km), followed by the Congo: 2,900 miles (4,700 km). The Congo River's alternative name, Zaire, comes from the Kikongo nzadi o nzere ('river swallowing rivers'). Image source: Grasshopper Geography
Europe<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUyOS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0NTkzOTMyMH0.tq5fjnq8wvLqXY0C9gzfoUd0ahOAQ7IZQxbpVnC1FdY/img.png?width=980" id="a8ec4" class="rm-shortcode" data-rm-shortcode-id="1ce5f59691501103343e080905ce74a3" data-rm-shortcode-name="rebelmouse-image" />
The Volga (in yellow) is the river with the biggest catchment area in Europe (just under 545,000 square miles; 1.41 million km2). It flows exclusively through Russia, and the catchment area is entirely within Russia as well. Europe's number two is the Danube (in orange), which flows through 10 countries — more than any other river in the world. Its drainage basin (just over 307,000 square miles; almost 796,000 km2) includes nine more countries. Image: Grasshopper Geography
Germany<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUzMC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0Mzk4ODA3Nn0.qX1sOfJWAI7TUbTQCiIob-R5p4_wj299wEtrYAUREmg/img.png?width=980" id="d5efa" class="rm-shortcode" data-rm-shortcode-id="8e73c53d75840f21b4f2ca4b8a1e7f51" data-rm-shortcode-name="rebelmouse-image" />
The hydrographic map of Germany is dominated by just four major drainage systems: the Danube (in orange) in the south, the Rhine (in blue) in the west, the Elbe (in purple) in the east and the Weser (in green) between the latter two. In Antiquity, the Rhine was the border between the Roman Empire and the Germans. Rome once attempted to shift the border to the Elbe, which would have radically altered the course of history, but it suffered a massive defeat in 9 CE at the Teutoburger Wald (roughly between both rivers). Image: Grasshopper Geography
Great Britain and Ireland<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUzMS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY1OTk2MjM3MX0.nDy__OLIyC1arty4_2xd54fjTzmfsIZo-2pe5QRjjA4/img.png?width=980" id="31a6f" class="rm-shortcode" data-rm-shortcode-id="d089f66097f37a10ab854eaccdac3581" data-rm-shortcode-name="rebelmouse-image" />
Both Ireland and Great Britain are islands, as a result of which neither boasts a continental-class river. Twenty of the 30 longest British rivers are less than 100 miles (160 km) long. The longest river in Britain is the Severn (220 miles, 354 km), its catchment area shown in blue in the southwest. Ireland's longest river is the Shannon (224 miles, 360 km). Even combined they're not as long as France's Seine (483 miles, 777 km). Image: Grasshopper Geography
United States<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUzNC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY2MDYyMzEyM30.7S_83dA6bcLyID_7BhH1R_OTy61tpgDZrBMQ_iPwnjM/img.png?width=980" id="a879d" class="rm-shortcode" data-rm-shortcode-id="a7c74a7b5a7887fb2d13b40d5d96223c" data-rm-shortcode-name="rebelmouse-image" />
Spread-eagled across the central part of the United States, the Mississippi's drainage basin covers all or parts of 32 U.S. states (and two Canadian provinces). The easternmost point of Ol' Man River's catchment area is really far east: Cobb Hill in northern Pennsylvania. Here rises the Allegheny, tributary of the Ohio, which in turn flows into the Mississippi at Cairo, Illinois. Image: Grasshopper Geography
Washington State<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUzNS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0MzU2MzM4OH0.mniqbkEQq84rNaWOQIl4fB4mOhNdJf5WactNyE_VsyM/img.png?width=980" id="adc4d" class="rm-shortcode" data-rm-shortcode-id="97eb5a5add49c06ef00ff0bca812b380" data-rm-shortcode-name="rebelmouse-image" />
Even leaving out the Mississippi, there's enough going on in the rest of North America to keep the eye occupied. Here's a drainage map of Washington State. The big fish in this much smaller pond is the Columbia River (drainage area in blue), the largest river in the Pacific Northwest. Only in the western third of the state is there a colourful counterpoint, in the multitude of smaller river basins that are draining into the Pacific or into Puget Sound. Image: Grasshopper Geography
Australia<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUzNi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzOTM0ODM2NH0.U7vckwnoNoxf-bk8SuYO246hNMpR2zXILILsd4pas9o/img.png?width=980" id="38c2b" class="rm-shortcode" data-rm-shortcode-id="0c44d30d61c6cb94b8d5c7205cbabd58" data-rm-shortcode-name="rebelmouse-image" />
At 1,558 miles (2,508 km), the Murray is Australia's longest river. It is often considered in conjunction with the Darling (915 miles, 1,472 km), the country's third-longest river, which flows into the Murray. The Murray-Darling basin (in blue, in the southeast) covers just under 410,000 square miles (1.06 million km2), or 14 percent of Australia's total territory. Don't let that spidery network of river courses in the interior fool you: Australia is the world's driest inhabited continent (Antarctica, bizarrely, is drier). Image: Grasshopper Geography
Russia<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8xOTE0MjUzNy9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYwNzg5MzIxOX0.WhShHLjjWdEh4FF_OZsY1oTN3Vc77X29TbMYbVHrHqA/img.png?width=980" id="f5cee" class="rm-shortcode" data-rm-shortcode-id="53acd93f1ab67be979e6ab128c144ce6" data-rm-shortcode-name="rebelmouse-image" />
Four of the world's largest drainage basins are in Russia: the Ob, Yenisei and Lena (origin of Vladimir I. Ulyanov's nom de guerre, Lenin) entirely and the Amur, shared with China. The Volga may be Europe's longest river, but 84 percent or Russia's surface water is east of the Urals, in Siberia. The sparsely-populated region is traversed by 40 rivers longer than 1,000 km. Combined, the Ob, Yenisey and Lena rivers cover a drainage area of about 8 million km2, discharging nearly 50,000 m3 of water per second in the Arctic. Image: Grasshopper Geography
Scientists have found evidence of hot springs near sites where ancient hominids settled, long before the control of fire.
Finances can be a stressor, regardless of tax bracket. Here are tips for making better money decisions.
- Whether you have a lot of money or a lot of debt, it matters how you handle your personal finances. A crucial step when it comes to saving is to reassess your relationship with money and to learn to adopt a broader, more logical point of view.
- In this video, social innovator and activist Vicki Robin, psychologist Daniel Kahneman, Harvard Business School professor Michael Norton, and author Bruce Feiler offer advice on achieving financial independence, learning to control your emotions, spending smarter, and teaching children about money.
- It all starts with education and understanding. The more you know about how money works, the better you will be at avoiding mistakes and the easier it will be to take control of your financial circumstances.