In a world of diverse and changing circumstances, economists and other social scientists can do real harm by applying the wrong model. Unfortunately, they get virtually no training in how to choose among the alternatives.
PRINCETON – We live in a complicated world, so we are forced to simplify it. We categorize people around us as friends or foes, classify their motives as good or bad, and ascribe events with complex roots to straightforward causes. Such shortcuts help us navigate the complexities of our social existence. They help us form expectations about the consequences of our and others’ actions, and thereby facilitate decision-making.
PRINCETON – We live in a complicated world, so we are forced to simplify it. We categorize people around us as friends or foes, classify their motives as good or bad, and ascribe events with complex roots to straightforward causes. Such shortcuts help us navigate the complexities of our social existence. They help us form expectations about the consequences of our and others’ actions, and thereby facilitate decision-making.