Sean Carroll's Mindscape: Science, Society, Philosophy, Culture, Arts, and Ideas 220 | Lara Buchak on Risk and Rationality
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Dec 12, 2022 In this thought-provoking discussion, Lara Buchak, a Princeton philosophy professor, dives deep into decision theory and the complexities of rational choice. She explores the nuances of risk and uncertainty, questioning conventional wisdom on risk aversion. The conversation touches on the influence of personal values, the paradox of needing more information in decision-making, and how worst-case thinking can skew judgment. Buchak's insights challenge us to rethink what it means to be rational in a world filled with unpredictability.
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Expected Utility Theory Limitation
- Expected utility theory suggests the rational choice is to maximize average utility.
- Lara Buchak argues this is incomplete, omitting risk aversion.
Risk Aversion and Rationality
- Risk aversion is not irrational; it's a separate factor in decision-making.
- People have values and a separate aversion to bad outcomes.
Decision Theory Expert's Dilemma
- When Lara Buchak tells people she studies decision theory, they laugh.
- She admits to being terrible at quick decisions herself.
