4min chapter

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Rational Minds Part 5: Heuristics Make Us Smart - Gerd Gigerenzer

The Joe Walker Podcast

CHAPTER

The Difference Between Kahneman and Simon's Approach to Neoclassical Economics

There's a discrepancy between the coherence axiom and then what people do. So when you say, well, that's a failure of human reasoning or human rationality, you say, no, that’s a failure of the model. Do you think Danny still believes in that model? I haven't talked to him recently, but I have not seen anything that he said that he would actually doubt the neoclassical economic models. We need a revolution of behavioral economics and also of neoclassicalEconomic theories so they can deal with uncertainty.

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