As human beings, we are, in fact, creatures. Like any other living organism, energy conservation is of highest priority to our vibrant being, whether we are consciously aware of that fact and its influence over our behavior or not. So, how does that affect our decisions in life?
In this edition of Two Guys on Your Head, Dr. Art Markman and Dr. Bob Duke discuss two great minds in psychology, and the founders of Behavioral Economics, Daniel Kahneman and Amos Tversky.
In the 1960s Kahneman and Tversky conducted a series of studies to determine the influence of rationality in human decision-making behavior. Prior to their work, it was generally accepted in economic theory that all human decision-making was rational, expressed in a term, “man as a rational actor.”
According to the work of Kahneman and Tversky, while we may like to believe that our decisions are made based on what’s in our best interest at any given moment, we actually make assessments based on algorithms they developed in their research.
Thinking takes time and energy. Sometimes, it’s quicker and therefore less energy expensive to let our unconscious, or intuitive mind guide us; but it’s not foolproof.
The Two Guys on Your Head can tell you more about these Nobel Prize winning scientists and how they arrived at their enlightening conclusions about human decision-making.
Check out this TED talk with Daniel Kahneman on The Riddle of Experience vs. Memory, and if you're interested download a PDF of his latest book, "Thinking, Fast and Slow".
