order
 
    © Christian Müller 2019  
     
    «When I see experimental evidence such as that underlying the Allais paradox, I find it very unproductive to marvel at the stupidity or irrationality of the human mind (this reaction may be attributed to the fact that I almost invariably fall into the traps built by the experimenters!).»
Tirole, 2002, p. 640, emphasis added
 
    Humans typically assume that the world is ruled by uncertainty and apply according decision making rules. Experimental economists, by contrast, only consider well-defined, resolvable problems and usually don't understand that their problems do not correspond to real life problems. The above picture illustrates this confusion.  
    No wonder, therefore, that behavioural and other economists detect «IRRATIONALITY».  
«home   EXCLUSIVE: READ MORE IN SECTION 2.2.2 OF MY BOOK.  
    chapter 2.2.2
 
       
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