Chapter 13 Flashcards
(2 cards)
What is unbounded rationality? (from Herbert,2)
-unbounded rationality: cognitive system comes with limitations, not consistent preferences, have cognitive biases and limitations and lack of willpower (we are nudged)
-science to help us correct our mistakes → Science is a learned tool of survival.
In what way can one see science through a new light? 3
-interdisciplinary aspect of science: it can bring about new insights from perspectives that have never been explored before.
-ex. combining neuroscience or sociology and economics, one can understand how the market works and how customers make decisions regarding products and services
→ in order for one to fully understand a field of inquiry, one must understand all aspects that have an effect (social, natural and behavioral context)
