Modern Wisdom

#531 - Russ Roberts - An Economist’s Guide To Life’s Big Decisions

Sep 26, 2022

Russ Roberts, economist and Stanford research fellow, shares his insights on navigating life's big decisions. He discusses the limitations of economic models in matters like marriage and parenthood, emphasizing the interplay of rationality and emotion. Learn about Darwin's quirky checklist for marriage, the anxiety of procrastination, and the balance between pleasure and meaning in decision-making. Roberts also explores the uniqueness of transformative experiences and the role of self-awareness amid uncertainty, providing a refreshingly human perspective on life's choices.

01:00:42

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Russ Roberts

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Quick takeaways

Rational decision-making falls short when it comes to important life decisions that involve values and meaning beyond immediate pleasure or pain.

Decisions like marriage, having children, and choosing a career cannot be reduced to simple calculations and expected outcomes.

Understanding the anticipation effect and fading affect bias can help individuals navigate uncertainty and make decisions that maximize enjoyment and fulfillment in life.

Deep dives

The Limitations of Rational Decision-Making

Rational decision-making falls short when it comes to important life decisions that involve values and meaning beyond immediate pleasure or pain. The economist toolkit of cost-benefit analysis and maximizing utility may not be applicable in these situations.

Confucius and Confucianism

01:00

Reverse the Anxiety Cost With the Anticipation Effect

03:24

What Do You Want to Be?

03:31

Understanding the Principles and the Artistry of Life

01:45

Intro

5min

Navigating Significant Life Decisions

23min

The Irreversibility of Life Choices: Lessons from Transformative Experiences

2min

Facing Anxiety: Embracing Action Over Inaction

8min

The Balance of Pleasure and Meaning

19min

Navigating Uncertainty in Life's Big Decisions

2min

Football Coaching Insights Through Economic Principles

3min

The Intangibles of Elite Performance in Rugby

4min

Russ Roberts is an economist, a research fellow at Stanford University, an author and a podcaster.

Economics promised us a model which works for all of life's decisions. From what to buy for lunch to investing in a company. But when you're faced with decisions like where to live, how many children to have, whether to get married or what sort of person you want to be, it falls short. Thankfully Russ has a new toolkit.

Expect to learn why Charles Darwin made a checklist before marriage which said his wife was slightly better than a dog, why the decision about whether to have children is so difficult to predict, whether rationality is totally incompatible with the decisions that define us, why happiness is overrated as an optimising function, whether tradition is any use and much more...

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