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Beautiful theory. Wrong species.

Beautiful theory. Wrong species. How it should work. How economists* pretend it works. * Business executives and civil servants are more guilty than economists in this respect. Homo Economicus. Operates in a world of complete trust Has perfect information

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Beautiful theory. Wrong species.

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  1. Beautiful theory. Wrong species.

  2. How it should work.

  3. How economists* pretend it works * Business executives and civil servants are more guilty than economists in this respect

  4. Homo Economicus • Operates in a world of complete trust • Has perfect information • Perceives the world objectively in ways which are always mathematically expressible • Considers every available option • Is free of complex emotions such as fear, regret, spite, anger, resentment and mistrust • Is a-social: has no understanding of relationships

  5. “Thus, the conventional view that natural selection favors nervous systems which produce ever more accurate images of the world must be a very naive view of mental evolution” (Trivers 1976/2006)

  6. The sweet spot Psychology Technology Economics

  7. David Rock's SCARF model • Status • Certainty • Autonomy • Relatedness • Fairness

  8. The narcissism of small differences

  9. Strategy hints • Optionality not optimality • The sweet spot • Spot the dumbest "rationalist" economic assumption of your competitors, and ignore it. • Dare to be trivial

  10. @rorysutherland Thank you.

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