Jump to ContentJump to Main Navigation
Ecological RationalityIntelligence in the World$
Users without a subscription are not able to see the full content.

Peter M. Todd and Gerd Gigerenzer

Print publication date: 2012

Print ISBN-13: 9780195315448

Published to Oxford Scholarship Online: May 2012

DOI: 10.1093/acprof:oso/9780195315448.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 25 March 2019

Designed to Fit Minds

Designed to Fit Minds

Institutions and Ecological Rationality

Chapter:
16 Designed to Fit Minds
Source:
Ecological Rationality
Author(s):

Will M. Bennis

Konstantinos V. Katsikopoulos

Daniel G. Goldstein

Anja Dieckmann

Nathan Berg

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195315448.003.0126

Economic models of benefit–cost analysis assume decision makers choose so as to maximize net benefits given stable internal preferences. But institutional structure can play a central role in determining whether or not an agent’s decisions promote their individual preferences. This chapter explores four cases where the interaction between institutional structure and non-optimizing human decision processes does a better job than optimizing models at explaining choice. These cases suggest that institutions are often designed to fit minds. In some cases these designs rely on existing heuristics and their building blocks (organ donation rules, slot-machine design), while in other cases institutions design new lexicographic heuristics to help make decisions fast and unambiguous (driving right-of-way rules, World Cup soccer team ranking rules).

Keywords:   benefit−cost analysis, default heuristic, institutional design, lexicographic strategy, organ donation, preference stability, traffic right-of-way, slot machines, ranking rules

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .