Sunday, 16 January 2000

From "Shrewdly Irrational"

By Robert H. Frank.

Experimental psychology provides compelling evidence that the feelings motivated by rational assessment often lose out to those associated with more direct or immediate forms of reinforcement [...]

In situation A, subjects are asked to choose today between the following two rewards: (1) $100 to be received twenty-eight days from now; or (2) $120 to be received thirty-one days from now. Here, most people respond in what seems like a rational manner by picking the second reward.

[...] In situation B, subjects are asked to choose between [...] $100 today; or [...] $120 three days from now [...] This time, however, most subjects choose the first reward.

[...] Rats behave the same way.

No comments: