PinnedKoen SmetsWe are all economistsMainstream and behavioural economics are two sides of the same coinJun 3, 20164Jun 3, 20164
Koen SmetsNaïve and inadequateWe have a tendency to believe not only that the reality is exactly how we see it, but also that just a little information is often enough…5d ago5d ago
Koen SmetsThe limits of pragmatic decision-makingWe are generally pragmatic decision makers, neither totally calculated and logical, nor entirely irrational. But our pragmatism has limits…Nov 8Nov 8
Koen SmetsRationality is bullshit — Part 2Is it possible to categorize our own choices, decisions and behaviours as rational or irrational? Or is the notion of rationality in this…Nov 1Nov 1
Koen SmetsRationality is bullshit — Part 1The term ‘rationality’ and its derivatives lack accuracy, more often than not meaning whatever the person using it wants it to mean. Might…Oct 25Oct 25
Koen SmetsMany of our beliefs are wrong but some are usefulWe may have some beliefs that are true, but many, even though they serve us well, are at the very least open to question.Oct 18Oct 18
Koen SmetsAbsolute goals in a world of relative trade-offsSome decisions often come down to how much money, time or effort something we want (or want to avoid) is worth. This can be remarkably hard…Oct 11Oct 11
Koen SmetsReality is what we feelMuch as we like to believe we can and do use rational thought about facts to interpret the world and react to it, it is our feelings that…Oct 4Oct 4
Koen SmetsThe curse of extremismWe have a taste for the extreme — after all, who is interested in what is just middling? But together with other tendencies, it can…Sep 27Sep 27