Merbin: A lot of what are called biases are actually evolutionary adaptations to an uncertain world. He argues that rationality became defined by economists as conformity to certain axiems. But the vast range of decisions people take is not characterized by a small world, he says. And i think the great danger of the use of models by economists is that they believe that this is applied to the whole panoply of human life.
John Kay and Mervyn King talk about their book, Radical Uncertainty, with EconTalk host Russ Roberts. This is a wide-ranging discussion based on the book looking at rationality, decision-making under uncertainty, and the economists' view of the world.