Sublime

“He is tempted to settle this frivolous claim to avoid a freak loss, however unlikely. That’s overweighting of small probabilities. Since he is likely to face many similar problems, he would be better off not yielding.”

But it can also go the other way. What economics has missed is that adding an incentive—a fine or a bonus—may be subtracting something else, the individual’s sense of responsibility, or obligation, or intrinsic pleasure.

Kahneman and Tversky focus on changes because changes are the way Humans experience life.

“She didn’t care which of the two offices she would get, but a day after the

psychologist Daniel Kahneman, studied human decision making from the “heuristics and biases” model

incredible work in applied behavioral economics that was happening in the government, specifically using the power of defaults to encourage positive behavior. These defaults are known as nudges, made famous in the bestseller Nudge, by Richard Thaler and Cass Sunstein.

La richesse des choix possibles augmente la liberté individuelle à un degré qu’on ne pouvait imaginer il y a cent ans, avec l’inévitable conséquence qu’elle augmente l’incertitude. Cette dernière mine l’engagement, ce qui a pour effet de dévaloriser le choix. La liberté ne contribue pas nécessairement à l’émergence d’un sens de la vie. Lorsque les

To write these questions, I first had to decide which of two ways to ask the question: either in terms of “willingness to pay” or “willingness to accept.” The first asks how much you would pay to reduce your probability of dying next year by some amount, say by one chance in a thousand.

Financial incentives are generally easy to spot, but nonfinancial incentives, like reputation or fairness, are less obvious yet still important in driving decisions.