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You have arrived at the web home of Noah Brier. This is mostly an archive of over a decade of blogging and other writing. You can read more about me or get in touch. If you want more recent writing of mine, most of that is at my BrXnd marketing x AI newsletter and Why Is This Interesting?, a daily email for the intellectually omnivorous.

November, 2011

What Separates Psychology and Economics

The distinction between psychology and economics as related to Daniel Kahneman's discoveries.
Yesterday I posted a link to the Michael Lewis profile/review of Daniel Kahneman's new book. Since yesterday I've repeated this little nugget on how Kahneman discovered behavioral economics three times and thought it was worth sharing:
I can still recite its [a 1970s paper on the psychological assumptions of economic theory] first sentence: “The agent of economic theory is rational, selfish, and his tastes do not change.”
I was astonished. My economic colleagues worked in the building next door, but I had not appreciated the profound difference between our intellectual worlds. To a psychologist, it is self-evident that people are neither fully rational nor completely selfish, and that their tastes are anything but stable.
It's a nice way to think about the difference between psychology and economics.
November 9, 2011
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