#712 Lionel Page - Optimally Irrational: The Good Reasons We Behave the Way We Do
RECORDED ON OCTOBER 25th 2022.
Dr. Lionel Page is a Professor of Economics and Director of the Behavioural and Economic Science Cluster at the University of Queensland. He is interested in understanding how people make decisions, alone or in groups. His research links insights from economic theory (theory of decision and game theory) and from other behavioral sciences such as psychology. He is the author of Optimally Irrational: The Good Reasons We Behave the Way We Do.
In this episode, we focus on Optimally Irrational. We start by discussing what it means to be optimally irrational, and how rationality has been traditionally studied in economics. We talk about biases, replacing the H. economicus model, and adding an evolutionary lens to human behavior. We then go through some psychological phenomena, including rules of thumb and gut feelings; reference-dependence and loss aversion; overweighting the probabilities of extreme outcomes; preferences; kindness and reciprocity; emotions; commitment; social identity; indirect speech, ambiguity and innuendos; and overconfidence and self-deception. Finally, we discuss what rationality is.
Time Links:
Intro
The premise of the book. What is it to be optimally irrational?
How rationality has been traditionally studied
A new view on biases
Replacing the Homo economicus model
An evolutionary approach
Rules of thumb and gut feelings
Reference-dependence and loss aversion
Overweighting the probabilities of extreme outcomes
Understanding preferences
Kindness and reciprocity
The rationality of emotions
The benefits of commitment
Social identity
Indirect speech, ambiguity and innuendos
Overconfidence and self-deception
What is rationality?
Follow Dr. Page’s work!
Follow Dr. Page’s work:
Faculty page: https://bit.ly/3sobjWv
Website: https://bit.ly/3Txi5VN
ResearchGate profile: https://bit.ly/3N06o7E
Optimally Irrational: https://amzn.to/3D4bZ8f
Twitter handle: @page_eco