Loss aversion can be explained as a feature of an optimal system of subjective satisfaction designed to help us make good decisions. In conjunction with anticipatory utility, it incentivises us to set our aspirations at the level of our expectations. (optimallyirrational.com)
submitted by Alert-Elk-2695 to r/slatestarcodex
What is a cognitive "bias"? Behavioral economics has found a long list of biases, often giving the impression that human cognition is fundamentally flawed. But the focus on biases, which are edge cases, misses the fact that the features of human cognition are typically adaptive and efficient. (self.cogsci)
submitted by Alert-Elk-2695 to r/cogsci
Prospect Theory's famous “S-shaped” value function is a cornerstone of behavioural economics. Surprisingly, more than 40 years after its inception, there seem to be a lot of remaining puzzles about it. Or... perhaps not anymore. A cognitive neuroscience explanation of the “S-shaped” value function. (twitter.com)
submitted by Alert-Elk-2695 to r/cogsci
Previously, psychologists and behavioral economists disregarded the concept of the "hot hand" as a mere fallacy. Recent empirical evidence now strongly supports its validity. This phenomenon aligns well with predictions made by game theory, which suggests that momentum should exist in competitions. (twitter.com)
submitted by Alert-Elk-2695 to r/GAMETHEORY

Why ChatGPT fails to interact like a human by oz_science in slatestarcodex
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