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Nobel Prize for Complexity of Human Decision Making

by Tim Kilpatrick on October 10, 2017
in Strategy Cognition

Economist Richard Thaler won the Nobel Prize in economics yesterday for his work in Behavioral Economics. This is a field of study of the complexity of human decision making. He is second person to win a Noble Prize in economics for Behavioral Economics. Psychologist Daniel Kahneman won the same award in 2002.  The field is a bridge between economics and psychology in decison making.

The mainstream model of people making decison as rational-utility maximizers, was upended by the studies by Thaler, Kahneman and others. They introduced us to many concepts that come into complex decision making including:  “endowment effect“, “loss aversion“, “status quo bias“, and “winner’s curse”.  People are complex. Behavioral Economics helps us understand this complexity.

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Our existential threat may not be AI, climate change, nor nuclear weapons, rather humans adding more complexity to the world than we can effectively manage. It already led to the collapse of every advanced society thus far.

We are adding complexity so fast that manual strategy cognition with 86 billion neurons and 100 trillion connections is not keeping up.

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This is a discussion about AI, complexity and strategy cognition. – Tim Kilpatrick

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