Beautiful theory. Wrong species.
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Transcript of Beautiful theory. Wrong species.
Beautiful theory. Wrong species.
How it should work.
How economists* pretend it works
* Business executives and civil servants are more guilty than economists in this respect
Homo Economicus• Operates in a world of complete trust
• Has perfect information
• Perceives the world objectively in ways which are always mathematically expressible
• Considers every available option
• Is free of complex emotions such as fear, regret, spite, anger, resentment and mistrust
• Is a-social: has no understanding of relationships
“Thus, the conventional view that natural selection favors nervous systems which produce ever more accurate images of the world must be a very naive view of mental evolution”
(Trivers 1976/2006)
The sweet spot
Technology
Economics
Psychology
David Rock's SCARF model
• Status• Certainty• Autonomy• Relatedness• Fairness
The narcissism of small differences
Strategy hints• Optionality not optimality
• The sweet spot
• Spot the dumbest "rationalist" economic assumption of your competitors, and ignore it.
• Dare to be trivial
@rorysutherland
Thank you.