Behavioral Economics: Predictable Bias

Humans have limited time and brain power, so people use simple rules of thumb to make judgments. But if what you're judging doesn't correlate well with the examples you can think of (your experience), the rule of thumb might fail - predictable bias

Let's make a list of irrational behaviors:

• You paid a lot for the tickets, and you convinced yourself to see it even in bad weather - "It cost so much"
• You'd rather clean your own yard than pay someone else to do it, even if you were offered a little more money to clean someone else's yard
• That expensive bottle of wine that you don't usually want to buy, your wife bought it for you as a gift and you happily accepted it, even though your property is shared
• You can buy something for 10 yuan for 5 yuan in another place if you run 10 minutes more, but you may not spend 10 minutes to buy it in another place for 11,105 yuan. arrive

Or the above example doesn't perfectly match your performance in real life, but it does show that people don't always behave according to the economic model - people are not all rational people

In other words: Human rationality is limited - people lack the cognitive ability to solve complex problems

Based on this, just like we build a rational person model, we build another model to predict this predictable bias (maybe just a trend, and not get an accurate result, like we know that bias is bound to arise, But it's impossible to know in what form )

The above, continue to read the book, what counts as writing (escape