decision_making.html

Human Behavior and Decision Making

<!-- can I make a simple decsription of human behavior and decision making that would be a useful categorization for understanding environmental problems -->

three major divisions - 1st -survival , 2nd-building an understanding of the life-world and being included in social interactions, and 3rd-trying to increase utility

survival represents needs

"needs" change with economic status - Maslow 1970

this shift in needs may be part of the human nature that I am looking for

understanding the life-world

aquiring language

belonging to social groups

other descriptions

dealing with other individuals

games -

uncertainty and risk, games against nature

examples:

global warming is an unceratin game/ precautionary principle is the maximin criteria

turning uncertainty into risk makes games more tractable <!-- another value of the universities and research -->

games against other people

need to build toward solutions that are mutually self-reinforcing rather than rely on trust and ethics which are weak constraints (Heap et al 1992 pg ***)

 

 

human decisions and game theory

types of "games", interactions

utility functions

defining with preference choices

defining with probabilities that are equivalent to preference choices

**comment- is the precautionary principle an example of a maximin game played against nature?

matrix - what is the best of the worst cases

**comment- can we look at the role of environmental science as playing one or more of the following purposes for society

provide better understanding, to delineate the game, provide context and details that limit the game

turn uncertainty into risk (identifying and quantifying risk factors)

find solutions under constraints (i.e. engineering, science as pre-engineering)

provide a social structure for the debate that is supposedly neutral

decisions can't be made with perfect information (because that doesn't exist)

bounded rationality - Gigerenzer

choices in problem solving

decisions under uncertainty - Tversky and Kahneman

modeling bounded rationality (Rubinstein 1998)

evidence of non-rational behavior

framing effects - how the question is posed

tendency to simplify problems - cancelling out factors

search for reasons - if the motivation is based on "internal" reasons that are unrelated to the problem, it violates rationality assumptions

there is also "information asymmetries" (Schrage, M. 2002. Outsmarting the customer.Tech Review. Oct 2002 pg 22)- that favor the one side

Stiglitz, Akerlog and Spence - 2001 Nobel Prize

obviously, we want to be on the heavy side of this assymetry