“If you had to boil it down to ‘What’s the number one problem in the world?’ well, it would be poor decision making,” says (Ralph) Adolphs (Professor of Pyschology and Neuroscience and biology, and director of Caltech’s Conter Center for Neuroscience). “It’s very hard to make complex decisions, especially when the consequences of those decisions will occur far in the future…

…Understanding how to improve that kind of decision making, that’s the big challenge. And neuroeconomics is the only scientific way to really crack it.”, Kimm Fesenmaier, “Valuable Decisions”, Caltech, Engineering & Science, Fall 2014

“I think the article below is ridiculous and frankly embarrassing for Caltech. I only have a bachelors degree in business from Sac State, but even I know that the human mind (no matter how much “neuroeconomic” study is performed on it) has no chance of making rational complex decisions about the consequences of events that will occur far in the future, without the benefit of computers which can model various scenarios and determine probable outcomes. I don’t think humans are as irrational as some economic experts (Mr. Shiller) think. I just think our brains can’t calculate probabilities of uncertain events far in the future, without the benefit of computer models. Stated simply, if the computer model shows a human the probability is they are likely making a dumb/irrational decision, most humans will change their minds/view, so that they have a greater probability of making a smart or winning decision.”, Mike Perry, former Chairman and CEO, IndyMac Bank

 

“Valuable Decisions”, Kimm Fesenmaier, Caltech, Engineering & Science, Fall 2014

Posted on September 30, 2014, in Postings. Bookmark the permalink. Leave a comment.

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