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Explore the relationship between rationality and emotions in decision-making with a focus on behavioral economics and bridging classical models with empirical findings. Discover how biases and emotions can sometimes serve our interests. Delve into topics like altruism, mental equilibrium, and the role of emotions in decision-making.
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Rational EmotionsHow Emotions Succeed When Reasoning Fails Eyal Winter The Center for the Study for Rationality The Hebrew University of Jerusalem
Behavioral Economics • Bridging between the classical decision models (mainly in econ) and experimental/empirical findings. • Classical models assume primarily the maximization of material preferences. • Behavioral models look also at mental and emotional preferences. • Most of the literature in behavioral economics is focusing on mental fallacies and biases that drive us away from our material objectives. • I am instead trying to point out at cases in which our biases and emotions serve our interests sometimes even the narrow and immediate material interest
Anger • Sorry your flight has been canceled • Al-Jazira interview • Mental Equilibrium • “Incentivising” Emotions
Mental Equilibrium and The Prisoners’ Dilemma Material Mental
Turdoides squamiceps (Syrian African rift) Feed the entire flock not only their offspring
Altruism and Rationality • Zahavi’s Handicap Principle • Kin Selection • Group Selection
Kin Selection • Altruism is more common in social environments which are ethnically homogenous. • James Andreoni: A 10 percentage point increase in ethnic diversity reduces donations by 14% • Tax Evasion in Norway!
The biological mechanisms for altruism, cooperation and trust • Oxytocin • Autism and William’s Syndrome