Journal article
An exploratory analysis of composite choices: Weighing rationality versus irrationality
The Journal of socio-economics, v 40(6), pp 949-958
2011
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
► Humans are engineered neurologically to make rational and irrational choices. ► This paper introduces a new composite choice model wherein economic agents constantly weigh rationality versus irrationality when encountering options. ► The model assumes the possible variations of one-way or two-way cross-enbedments (i.e., interaction) between rationality and irrationality. ► One specific case illustrated numerically shows that a two-way cross-embedment results in a paradoxical phenomenon, reflective of a struggle between two selves. ► Future research will explore implications for public policy design and implementation.
Humans are engineered neurologically to make rational and irrational choices. This paper introduces a new paradigm for decision making – a composite choice model – in which economic agents are constantly weighing rationality versus irrationality when encountering options. In an exploratory, deterministic, two-period model, an assumption of a two-way cross-embedment (i.e., a two-way interaction between the rational and irrational components) results in a paradoxical phenomenon, an outcome of either tending toward bliss or abyss at the end of the first period. This implies, for instance, a psychological struggle between two selves within the mind. The paradigm proposed is compared to the dual-process theories recently developed by the cognitive sciences. Future research will explore implications for public policy design and implementation.
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Details
- Title
- An exploratory analysis of composite choices: Weighing rationality versus irrationality
- Creators
- Bijou Yang Lester - Drexel University
- Publication Details
- The Journal of socio-economics, v 40(6), pp 949-958
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- [Retired Faculty]
- Web of Science ID
- WOS:000208882800025
- Scopus ID
- 2-s2.0-80053898479
- Other Identifier
- 991019169901104721
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- Web of Science research areas
- Economics