I am looking for mathematical and / or logical explanations for irrational human behavior. A good example would be prospect theory from Kahneman and Tversky, which exhibits a non-linear value function for losses and gains. Who knows similar examples?
The Paradox of Choice – Why More Is Less is a 2004 book by American psychologist Barry Schwartz. In the book, Schwartz argues that eliminating consumer choices can greatly reduce anxiety for shoppers.
s. Béatrice Marianne Ewalds-Kvist Thank you! I remember vaguely that I once heard about this paradox, but I have more or less forgotten it. This is a perfect example for something that is really counterintuitive.
In any dynamic system, flow is proportional to a driving force an inversely proportional to a resistance. we can write the following general equation: :
Flow = Driving force / Resistance
In the consumer-based economy, the "consumer spending"(Flow) is introduced in my booklet as a competition between a driving force and a resistance for spending. people have a natural motivation (driving force) to spend their money to fulfill some needs like buying food, homes, furniture, and electronic devices. On the other hand, the amount of money spent is limited by our income. If we consider the income as the conductance for buying, the inverse (1/income) could then be the resistance for spending money
Consumer spending (CS) = Natural needs/ (1/income)
The effects of marketing and credit cards can be added to this formula. Based on this new definition, marketing and advertisement enhance the driving force for spending while the credit card role is to hinder the resistance due to the income. We will have :
CS = (natural needs + marketing)/ ( 1/ [income +credit card])
As a conclusion, people become impulse buyers instead of buying what they need only and according to their salary. An introduction of the booklet is available in my profile:
Book The Universal Law, Consumer Economy and Global Warming
Zin Eddine Dadach This is a very interesting approach. I see some similarities to the works of John Kenneth Gailbraith. We are buying lots of things that we do not need. Thank you!
The Buddha said: ‘O bhikkhus, there are two kinds of illness. What are those two? Physical illness and mental illness. There seem to be people who enjoy freedom from physical illness even for a year or two… even for a hundred years or more. But, O bhikkhus, rare in this world are those who enjoy freedom from mental illness even for one moment, except those who are free from mental defilements’.
Standard Probability Theory (SPT) can provide some mathematical reasoning for irrational behavior.
You may please see the following link to understand it better.
URL: https://www.insidescience.org/news/quantum-math-could-explain-irrational-reasoning
Best regards,
Sahar Qazi Thanks. This is an approach I have never heard of. It is quite interesting to see from what angles one can approach irrationality.
That is good then, Horst Treiblmaier .
Exploring new knowledge is always fun and interesting. :)
I've worked vaguely over rational or irrational behaviour. But, for instance, this research proposal could be useful to you.
Kind regards
Research Proposal Mathematical Proposition for the Dynamic Work Flow
Wikipedia has many interesting references about irrationality of a non-switching behavior in the Monty Hall problem.
https://en.wikipedia.org/wiki/Monty_Hall_problem#Vos_Savant_and_the_media_furor
Dario Bonaretti Monty Hall is indeed an interesting problem. I also like Simpson's paradox, which at times is very tricky to identify.
https://en.wikipedia.org/wiki/Simpson%27s_paradox
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